. Daily Commodity Analysis - Oil tensions, gold climb, silver surge.

Daily Commodity Analysis – Oil tensions, gold climb, silver surge.

Daily Commodity Analysis – Oil tensions, gold climb, silver surge.

26 Dec 2023

Introduction:

In the commodities market, Oil prices show a modest uptick as geopolitical tensions in the Middle East and expectations of a U.S. interest rate cut influence market sentiment. Meanwhile, Gold surges above $2,060 amid signs of subdued inflation, raising speculation about potential rate cuts in 2024. Silver and copper also experience price movements driven by factors such as reduced U.S. Treasury yields and geopolitical concerns.

Brent Crude Oil:

Oil edges upward as investors monitor tensions in the Middle East and anticipate a US rate cut.

On Tuesday, oil prices increased as investors turned their attention to geopolitical tensions in the Middle East and expressed optimism about the potential for the U.S. Federal Reserve to initiate interest rate cuts, bolstering global economic growth and demand for fuel.

Anticipations of interest rate reductions and tensions in the Red Sea have triggered a recent upturn in oil prices. However, CMC Market analyst Leon Li notes that Maersk’s announcement about the resumption of shipping routes through the waterway has somewhat alleviated concerns regarding the oil supply.

Both benchmarks recorded approximately 3% gains last week following Houthi attacks on ships that disrupted global shipping and trade. This added to the existing tensions in the Middle East amid the ongoing Israel-Gaza conflict.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 78.99| Negative Crossover | Bearish
  • MA 20: 78.48| Positive Crossover | Bullish
  • MA 50: 78.27| Positive Crossover | Bullish

Simple:

  • MA 5: 79.19| Negative Crossover | Bearish
  • MA 20: 78.60| Positive Crossover | Bullish
  • MA 50: 77.22| Positive Crossover | Bullish

RSI (Relative Strength Index): 52.31| Buy Zone | Bullish

Stochastic Oscillator: 8.17| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 80.05 | R2: 83.99
  • S1: 78.18| S2: 74.66

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 80.67 | Take Profit: 83.99 | Stop Loss: 78.74.

Gold:

Gold surpasses $2,060 as subdued inflation signals potential rate cuts in 2024.

Gold prices climbed in Asian trade with low volume on Tuesday, breaking out of a trading range observed throughout most of December. The uptick was prompted by soft U.S. inflation data, leading to increased speculation about early interest rate cuts in 2024.

The precious metal experienced a robust series of gains in recent sessions, propelled by a PCE price index reading that fell below expectations. This index is the Federal Reserve’s preferred measure of inflation.

The reading followed dovish signals from the Federal Reserve in its last meeting for 2023, heightening expectations that the central bank might initiate interest rate cuts as early as March 2024.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 2057.57 | Positive Crossover | Bullish
  • MA 20: 2042.70 | Positive Crossover | Bullish
  • MA 50: 2029.44| Positive Crossover | Bullish

Simple:

  • MA 5: 2059.40 | Positive Crossover | Bullish
  • MA 20: 2039.31| Positive Crossover | Bullish
  • MA 50: 2027.08| Positive Crossover | Bullish

RSI (Relative Strength Index): 64.44 | Buy Zone | Bullish

Stochastic Oscillator: 53.95| Buy Zone | Negative

Resistance And Support Levels:

  • R1: 2064.62 | R2: 2090.94
  • S1: 2043.57| S2: 2016.49

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 2067.63 | Take Profit: 2090.94 | Stop Loss: 2054.85.

Elsewhere In the Commodity Market.

Silver (XAG/USD) prices increase in low-volume holiday trading, propelled by reduced U.S. Treasury yields, a weaker dollar, and geopolitical tensions. In Asian trading on Tuesday, copper prices increased, continuing a recent streak of gains fueled by optimism regarding the red metal’s outlook in 2024.

Gold up (0.44%) at 2061.85, Silver up (0.37%) at 24.26, Palladium down (1.59%) at 1187.10, Platinum down (0.33%) at 970.83, Brent Crude Oil down (0.23%) at 78.64, WTI Crude Oil down (0.31%) at 73.34 as of writing time.

Key Economic Events & Data Release Today:

No Major key events for today.