. Daily Commodity Analysis - oil prices, winter gas surges, and gold rate-cut anxieties.

Daily Commodity Analysis – oil prices, winter gas surges, and gold rate-cut anxieties.

Daily Commodity Analysis – oil prices, winter gas surges, and gold rate-cut anxieties.

10 Jan 2024

Introduction

In the commodity landcape, WTI Crude Oil maintains modest gains below the mid-$72.00s, facing a bearish tilt in the technical setup. Natural gas futures surge for the sixth consecutive session due to frigid temperatures and heightened heating demand. Gold prices remain under pressure amid uncertainties about early Fed rate cuts, with attention on upcoming U.S. consumer price index data. Copper experiences a slight rebound after a recent decline, driven by concerns over a global economic slowdown and weak readings from major economies.

Markets In Focus Today – CRUDE OIL

WTI Price Analysis Sticks to modest gains below mid-$72.00s, not out of the woods yet.

WTI Oil prices gain some positive traction for the second straight day, albeit lack follow-through. The technical setup remains tilted in favour of bearish and supports prospects for deeper losses. West Texas Intermediate (WTI) Crude Oil prices attract some buyers for the second successive day on Wednesday, albeit lack follow-through and remain below the overnight swing high through the first half of the European session. The commodity currently trades just below mid-$72.00s, up nearly 0.35% for the day.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 72.52 | Positive Crossover | Bullish
  • MA 20 : 72.79 | Positive Crossover | Bullish
  • MA 50 : 75.07 | Negative Crossover | Bearish

Simple :

  • MA 10 : 72.31 | Positive Crossover | Bullish
  • MA 20 : 72.41 | Positive Crossover | Bullish
  • MA 50 : 74.64 | Negative Crossover | Bearish

RSI (Relative Strength Index) : 50.05 | Buy Zone | Bullish

Stochastic   Oscillator : 41.40 | Neutral Zone | Neutral

Resistance   And Support Levels :

  • R1 : 75.38 R2 : 77.52
  • S1 : 68.47 S2 : 66.33

Overall Sentiment : Bullish Market Direction : Buy

Trade Suggestion : Limit Buy : 71.75 | Take Profit : 74.72 | Stop Loss : 69.99

NATURAL GAS

Natural Gas Prices Are Volatile Amid Cold Weather and Red Sea Attacks.

Natural gas futures rallied again on frigid temperatures and mounting heating demand, continuing an uninterrupted stretch of gains that dates to the opening session of 2024. Natural-gas futures climbed by more than 7% on Tuesday, gaining for their sixth session in a row and hitting their highest settlement since mid-November, as cold-weather forecasts in the U.S. boost demand prospects for the heating fuel. U.S. natural gas futures are witnessing a significant surge, reaching their highest level since November 17, as fresh weather reports predict robust demand. As of 14:00 GMT, prices are up by over 4%, a direct response to anticipated colder temperatures and strong demand in the coming days.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2.79 | Positive Crossover | Bullish
  • MA 20 : 2.66 | Positive Crossover | Bullish
  • MA 50 : 2.66 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2.73 | Positive Crossover | Bullish
  • MA 20 : 2.53 | Positive Crossover | Bullish
  • MA 50 : 2.68 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 66.42 | Buy Zone | Bullish

Stochastic   Oscillator : 78.81 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 2.60 R2 : 2.71
  • S1 : 2.22 S2 : 2.11

Overall Sentiment : Bullish Market Direction : Buy

Trade Suggestion : Limit Buy : 2.952 | Take Profit : 3.180 | Stop Loss : 2.807

GOLD

Gold prices under pressure from rate-cut angst before inflation data.

Gold prices moved little in Asian trade on Wednesday, retaining most of their losses from the prior week as investors questioned bets on early interest rate cuts by the Federal Reserve. Focus was largely on upcoming U.S. consumer price index data, which could indicate U.S. inflation remained sticky in December. Gold was nursing steep losses over the past week as traders steadily scaled back bets that the Fed could begin trimming interest rates by as soon as March 2024. This notion triggered sharp gains in the dollar, which also weighed on bullion prices.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2040.85 | Negative Crossover | Bearish
  • MA 20 : 2039.53 | Negative Crossover | Bearish
  • MA 50 : 2016.24 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2046.71 | Negative Crossover | Bearish
  • MA 20 : 2045.87 | Negative Crossover | Bearish
  • MA 50 : 2015.56 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 47.97 | Buy Zone | Bullish

Stochastic   Oscillator : 17.29 | Sell Zone | Neutral

Resistance   And Support Levels :

  • R1 : 2127.21 R2 : 2168.19
  • S1 : 1994.53 S2 : 1953.55

Overall Sentiment : Bullish Market Direction : Buy

Trade Suggestion : Limit Buy : 2020.11 | Take Profit : 2058.40 | Stop Loss : 2000.39

COPPER

Copper sinks on weak economic outlook.

Among industrial metals, copper prices rose slightly on Wednesday after falling sharply over the past week, amid growing concerns over a demand slowdown this year. A swathe of weak economic readings from across the globe battered copper prices, with weak readings from top importer China acting as a major point of contention. Markets fear that slowing economic activity will chip away at copper demand this year, especially as the effects of high interest rates are baked into the economy. Focus is now on Chinese inflation and trade readings due on Friday, for more cues on the world’s largest copper importer.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 3.774 | Negative Crossover | Bearish
  • MA 20 : 3.813 | Negative Crossover | Bearish
  • MA 50 : 3.860 | Positive Crossover | Bullish

Simple :

  • MA 10 : 3.768 | Negative Crossover | Bearish
  • MA 20 : 3.813 | Negative Crossover | Bearish
  • MA 50 : 3.860 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 40.42 | Neutral Zone | Neutral

Stochastic   Oscillator : 42.27 | Neutral Zone | Positive

Resistance   And Support Levels :

  • R1 : 3.806 R2 : 3.865
  • S1 : 3.733 S2 : 3.671

Overall Sentiment : Neutral Market Direction : Buy

Trade Suggestion : Limit Buy : 3.741 | Take Profit : 3.806 | Stop Loss : 3.697

Elsewhere In The Commodity Market

Gold up (0.08%) at 2031.40, Silver down (0.17%) at 22.91, Palladium up (2.45%) at 1001.00, Platinum up (0.14%) at 0.14, Brent Crude Oil up (1.06%) at 78.41, WTI Crude Oil up (1.27%) at 73.21 as of writing time.

Key Economic Events & Data Release Today:

(GBP) BoE Gov Bailey Speaks at 20:45. (USD) Crude Oil Inventories Forecast –0.675M, Previous –5.503M at 21:00.