. Daily Commodity Analysis - Oil, Gold, Palladium, Gas Trends.

Daily Commodity Analysis – Oil, Gold, Palladium, Gas Trends.

Daily Commodity Analysis – Oil, Gold, Palladium, Gas Trends.

18 Dec 2023

Introduction

Discover the latest dynamics in the commodities market, where oil prices surged over 1% amidst Russian export declines and Red Sea tensions. Gold responds to declining yields, while palladium stages a remarkable rebound from a five-year low, propelled by signals from the Federal Reserve. In this succinct overview, we unravel the forces influencing crude oil, gold, palladium, and natural gas, providing insights into technical analyses and market sentiments. Join us as we navigate the current landscape, spotlighting trends and potential opportunities for traders and investors alike.

Markets In Focus Today – Crude

“Oil Sees a 1% Surge Amidst Decline in Russian Exports and Heightened Tensions in the Red Sea”

Oil prices surged over 1% in Asian trading on Monday, propelled by a decline in Russian exports and concerns about Red Sea disruptions from Houthi attacks. Brent crude rose 0.8% to $77.18 per barrel, while U.S. West Texas Intermediate gained 0.9% to $72.04. Russia announced deeper export cuts for December, potentially by 50,000 barrels per day, ahead of schedule. The decision followed the suspension of two-thirds of Urals crude loadings due to a storm. Major shipping firms, including MSC and A.P. Moller-Maersk, opted to avoid the Suez Canal amid rising Houthi assaults. The Bab al-Mandab strait, vital for global seaborne commodity shipments, saw increased tensions. The positive market sentiment followed a dovish Federal Reserve meeting, easing concerns about a U.S. economic downturn and supporting a potential recovery in oil prices.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 71.60 | Positive Crossover | Bullish
  • MA 20 : 73.09 | Negative Crossover | Bearish
  • MA 50 : 76.89 | Negative Crossover | Bearish

Simple :

  • MA 10 : 70.74 | Positive Crossover | Bullish
  • MA 20 : 73.30 | Negative Crossover | Bearish
  • MA 50 : 78.51 | Negative Crossover | Bearish

RSI (Relative Strength Index): 42.71 | Neutral Zone | Neutral

Stochastic   Oscillator : 33.92 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 81.48 R2 : 84.18
  • S1 : 68.73 S2 : 64.93

Overall Sentiment: Bearish Market Direction: Sell

Gold

“Gold Prices Rise Amidst Declining Yields; Attention Turns to U.S. Inflation Report”

“Gold prices edged up on Monday, boosted by weakening bond yields as investors eagerly await the upcoming U.S. inflation data later this week. Spot gold rose 0.2% to $2,023.10 per ounce, while U.S. gold futures gained 0.1% at $2,037.40. The decline in U.S. 10-year Treasury yields, nearing their lowest since July, reduced the opportunity cost of holding gold. Investors are closely monitoring the Federal Reserve’s interest rate stance following its recent dovish pivot. Gold’s appeal is bolstered amid expectations of lower borrowing costs in 2024. Analysts suggest that softer U.S. economic data could further support gold prices as the market speculates on potential Fed rate cuts.”

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2017.46 | Positive Crossover | Bullish
  • MA 20 : 2010.98 | Positive Crossover | Bullish
  • MA 50 : 1985.12 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2014.37 | Positive Crossover | Bullish
  • MA 20 : 2018.05 | Positive Crossover | Bullish
  • MA 50 : 1981.85 | Positive Crossover | Bullish

RSI (Relative Strength Index): 54.69 | Neutral Zone | Neutral

Stochastic   Oscillator : 30.44 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 2036 R2 : 2070
  • S1 : 1958.07 S2 : 1928.79

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 2036 | Take Profit: 2070 | Stop Loss: 2028

Palladium

“Palladium Futures Rally to $1,090, Rebounding from Five-Year Low Amid Federal Reserve’s Dovish Signals”

“Palladium futures climbed to $1,090 per ounce, rebounding from a recent five-year low of $934 on December 5th. The rebound followed dovish signals from the Federal Reserve, which boosted precious metals and alleviated concerns in the palladium market tied to a gloomy outlook for key auto sector buyers. The Federal Open Market Committee’s average projections, indicating a potential 75 basis points in rate cuts for the next year, influenced the currency used to price precious metals. This, in turn, lowered the opportunity cost of holding platinum, a substitute for palladium in catalytic converters. Despite the recovery, palladium faced a challenging 2023, witnessing a sustained 40% decline amid a pessimistic outlook for internal combustion vehicles, slowing global growth, and the increasing market share of palladium-free electric vehicles.”

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 1059.16 | Positive Crossover | Bullish
  • MA 20 : 1041.99 | Positive Crossover | Bullish
  • MA 50 : 1073.24 | Positive Crossover | Bullish

Simple :

  • MA 10 : 1016.96 | Positive Crossover | Bullish
  • MA 20 : 1027.79 | Positive Crossover | Bullish
  • MA 50 : 1067.82 | Positive Crossover | Bullish

RSI (Relative Strength Index): 67.99 | Neutral Zone | Neutral

Stochastic   Oscillator : 91.36 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 1196 R2 : 1290
  • S1 : 960.65 S2 : 915.78

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 1196 | Take Profit: 1290 | Stop Loss: 1110

Natural Gas

“U.S. Natural Gas Prices Surge 4% to One-Week High Amidst Growing Demand”

“U.S. Natural Gas Futures Rise 4% to One-Week High on Increased Demand Forecasts and Record LNG Exports Despite record gas production and mild weather predictions, U.S. natural gas futures climbed 4% to a one-week high on Friday. The surge was driven by revised forecasts indicating higher demand for the upcoming week and a substantial flow of gas to liquefied natural gas (LNG) export plants. The front-month gas futures for January delivery settled at $2.491 per million British thermal units (mmBtu), their highest close since December 8. This gain, the third consecutive daily increase, lifted the front-month out of oversold territory for the first time in eight days. However, the contract remained down about 3% for the week, marking the sixth consecutive weekly decline, attributed to record production and ample gas in storage.”

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2.38 | Positive Crossover | Bullish
  • MA 20 : 2.49 | Negative Crossover | Bearish
  • MA 50 : 2.66 | Negative Crossover | Bearish

Simple :

  • MA 10 : 2.36 | Positive Crossover | Bullish
  • MA 20 : 2.50 | Negative Crossover | Bearish
  • MA 50 : 2.81 | Negative Crossover | Bearish

RSI (Relative Strength Index): 39.50 | Neutral Zone | Neutral

Stochastic   Oscillator : 38.01 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 3.09 R2 : 3.27
  • S1 : 2.52 S2 : 2.11

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Buy: 2.3843 | Take Profit: 2.1100 | Stop Loss: 2.4500

Elsewhere In The Commodity Market

Crude Oil WTI: $72.25, +$0.47, +0.65% Brent Oil: $77.04, +$0.49, +0.64% Natural Gas: $2.527, +$0.036, +1.45% Gold: $2,038.25, +$2.55, +0.13% Silver: $24.312, +$0.158, +0.65% Copper: $3.8803, -$0.0102, -0.26% US Soybeans: $1,313.25, -$1.75, -0.13%

Key Economic Events & Data Release Today:

8:30 PM (IST)-USD-NAHB Housing Market Index