. Daily Commodity Analysis - Oil soars, copper falls, gold, silver face dollar challenge.

Daily Commodity Analysis – Oil soars, copper falls, gold, silver face dollar challenge.

Daily Commodity Analysis – Oil soars, copper falls, gold, silver face dollar challenge.

04 Jan 2024

Introduction:

In the global commodities landscape, oil prices surge on Middle East supply concerns, while copper faces headwinds from renewed Chinese uncertainties. Gold slides below $2,050 as the dollar strengthens amid Federal Reserve uncertainty, and silver consolidates near a three-week low. Stay informed about these market movements and upcoming events in the energy and metals sectors.

Brent Crude Oil:

Oil prices continue to rise due to concerns about supply disruptions in the Middle East.

On Thursday, oil prices increased, building on substantial gains from the previous session. The rise was driven by ongoing apprehensions regarding supply disruptions in the Middle East, attributed to issues at a field in Libya and escalated tensions surrounding the Israel-Gaza conflict.

Both benchmarks experienced a roughly 3% increase, closing higher for the first time in five days on Wednesday. WTI recorded its most significant daily percentage gain since mid-November.

A group meeting has been scheduled for February 1 to assess the implementation of its most recent oil production cut.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 78.24| Positive Crossover | Bullish
  • MA 20: 78.47| Positive Crossover | Bullish
  • MA 50: 77.74| Positive Crossover | Bullish

Simple:

  • MA 5: 77.66| Positive Crossover | Bullish
  • MA 20: 78.47| Positive Crossover | Bullish
  • MA 50: 77.73| Positive Crossover | Bullish

RSI (Relative Strength Index): 55.07| Buy Zone | Bullish

Stochastic Oscillator: 82.88| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 79.69 | R2: 84.44
  • S1: 76.65| S2: 72.99

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 80.62 | Take Profit: 84.44 | Stop Loss: 78.29.

Copper:

Copper declines on more Chinese headwinds.

Within the realm of industrial metals, copper prices continued their decline on Thursday, stretching recent losses due to the dollar’s influence and renewed worries regarding China, the primary importer.

The red metal experienced a new round of selling following Fitch’s decision to downgrade the credit ratings of four major Chinese state-backed asset managers. The downgrade was attributed to concerns about China’s property market and inconsistent government support.

This action added to the negative sentiment surrounding China, sparking worries that deteriorating economic conditions in the country might diminish its demand for copper.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 3.851 | Positive Crossover | Bullish
  • MA 20: 3.887 | Negative Crossover | Bearish
  • MA 50: 3.868| Negative Crossover | Bearish

Simple:

  • MA 5: 3.846 | Positive Crossover | Bullish
  • MA 20: 3.887| Negative Crossover | Bearish
  • MA 50: 3.868| Negative Crossover | Bearish

RSI (Relative Strength Index): 43.00 | Neutral Zone | Neutral

Stochastic Oscillator: 34.55| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 3.893 | R2: 3.959
  • S1: 3.833| S2: 3.725

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Stop Sell: 3.810 | Take Profit: 3.725 | Stop Loss: 3.874.

Elsewhere In the Commodity Market.

Gold falls below the $2,050 mark as the dollar strengthens amid uncertainty surrounding the Federal Reserve. Silver consolidates its recent declines, reaching a near three-week low observed on Wednesday.

Gold is up (0.03%) at 2047.41, Silver is up (0.02%) at 23.02, Palladium is down (0.15%) at 1066.18, Platinum is down (0.12%) at 968.37, Brent Crude Oil is up (1.42%) at 79.35, WTI Crude Oil down (1.75%) at 73.97 as of writing time.

Key Economic Events & Data Release Today:

(USD) FOMC Meeting Minutes at 00:30.

(EUR) German CPI (MoM) (Dec) Forecast 0.1%, Previous –0.4% at 18:30.

(USD) ADP Nonfarm Employment Change (Dec) Forecast 115K, Previous 103K at 18:45.

(USD) Initial Jobless Claims Forecast 216K, Previous 218K at 19:00.

(USD) Crude Oil Inventories Forecast –3.200M, Previous –7.114M at 21:30.