Introduction:

In the world of commodities, Brent Crude Oil is maintaining its stronghold above the $90 per barrel mark, bolstered by supply constraints. Meanwhile, Gold is on the rise, finding support in a weakening dollar, ahead of crucial inflation data. Copper prices are also surging, driven by positive Chinese inflation figures, setting the stage for an eventful week in the markets.

Brent Crude Oil:

Oil prices decline but supply restraints keep Brent above $90 per barrel.

Although extended supply curbs by Saudi Arabia and Russia helped hold Brent above $90 a barrel, oil prices dropped on Monday as the outlook for gasoline demand was dampened by a stronger U.S. dollar and economic worries in China.

Following Saudi Arabia and Russia’s announcement last week that they will prolong voluntary production cuts of a combined 1.3 million barrels per day through the end of the year, oil prices have increased for the previous two weeks in a row, with Brent finishing at its highest level since November on Friday.

“Oil prices have largely converged with our fair value estimate, but with Saudi Arabia more aggressive than expected with its unilateral cut and continuing strength in demand, we caution against fading the recent run-up.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 90.07 | positive Crossover | Bullish
• MA 20: 88.96 | positive Crossover | Bullish
• MA 50: 87.09 | positive Crossover | Bullish

Simple:

• MA 5: 89.99 | positive Crossover | Bullish
• MA 20: 86.23 | positive Crossover | Bullish
• MA 50: 86.14 | positive Crossover | Bullish
  
  

RSI (Relative Strength Index): 65.09 | Buying Zone | Bullish

Stochastic Oscillator: 25.44 | Selling Zone | Negative

Resistance And Support Levels :

• R1: 90.70 | R2: 94.35
• S1: 89.09 | S2: 87.26

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 91.99 | Take Profit: 94.35 | Stop Loss: 90.38

Gold:

Gold prices increase as the dollar declines.

Prior to important inflation data due this week, gold prices jumped on Monday, providing some comfort from a decline in the dollar. Copper prices also increased significantly as Chinese inflation data showed some signs of stabilization.

The dollar reached a nearly six-month high as worries about sticky inflation and higher-for-longer U.S. rates caused the yellow metal to suffer a significant loss from last week. On Monday, there was some profit-taking in the dollar.

The U.S. consumer inflation numbers for August, which are due on Wednesday, are currently the focus. The measurement is anticipated to have risen from the previous month, giving the Federal Reserve additional motivation to maintain higher interest rates for a longer period of time.

Technical Overview :

Moving Averages:

Exponential:

• MA 5: 1923.48 | positive Crossover | Bullish
• MA 20: 1925.48 | positive Crossover | Bullish
• MA 50: 1924.69 | positive Crossover | Bullish

Simple:

• MA 5: 1921.76 | Negative Crossover | Bearish
• MA 20: 1927.91 | positive Crossover | Bullish
• MA 50: 83.06 | positive Crossover | Bullish
  
  

RSI (Relative Strength Index): 50.91 | Buying Zone | Bullish

Stochastic Oscillator: 59.38| Buy Zone | Positive

Resistance And Support Levels :

• R1: 1927.32 | R2: 1949.99
• S1: 1912.98 | S2: 1896.97

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 1933.99 | Take Profit: 1949.99 | Stop Loss: 1923.32

Elsewhere In the Commodity Market

Copper prices among industrial metals increased significantly on Monday, primarily due to better Chinese inflation estimates posted over the weekend. From a more than three-week low, copper futures increased 1.3% to $3.7615 per pound.

Gold up (0.45%) at 1926.55, Silver up (1.04%) at 23.14, Palladium up (1.15%) at 1208.50, Platinum up (0.6%) at 900.50, Brent Crude Oil down (0.47%) at 90.20, WTI Crude Oil down (0.78%) at 86.83 as of writing time.

Key Economic Events & Data Release Today:

(GBP) BoE MPC Member Pill Speaks at 13:30.