. Daily Commodity Analysis - Stable Oil Prices, Averted Shutdown, Silver Sinks on Dollar.

Daily Commodity Analysis – Stable Oil Prices, Averted Shutdown, Silver Sinks on Dollar.

Daily Commodity Analysis – Stable Oil Prices, Averted Shutdown, Silver Sinks on Dollar.

02 Oct 2023

Introduction:

In the world of commodities, Brent Crude Oil prices remained steady on Monday as the focus shifted towards the global supply outlook. This stability followed losses from the previous week, with investors now closely monitoring tight supply forecasts and finding relief in a last-minute agreement that averted a U.S. government shutdown. Meanwhile, in the silver market, XAG/USD faced downward pressure driven by a stronger U.S. dollar and increasing speculation about rate hikes. Amidst these developments, gold prices consolidated near multi-month lows, awaiting key events like the US ISM PMI and a speech by Fed Chair Powell. Additionally, Natural Gas futures saw mixed performance, posting gains over longer periods but closing lower on the last trading day of September.

BRENT CRUDE OIL:

Oil prices steady as focus returns to supply outlook.

Following losses at the close of the previous week, oil prices held stable on Monday as investors’ attention moved to a tight global supply forecast and some risk appetite was restored by a last-minute agreement that prevented a U.S. government shutdown.

When the Joint Ministerial Monitoring Committee meets on Wednesday, the Organization of the Petroleum Exporting Countries with Russia and its allies, or OPEC+, is unlikely to change its existing oil output policy, according to four OPEC+ sources who spoke to Reuters.

According to Hiroyuki Kikukawa, president of NS Trading, “oil prices started the week on a strong note amid supply concerns with no policy change by OPEC+ expected, while the avoidance of a U.S. government shutdown over the weekend gave some relief.”

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 92.59| Positive Crossover | Bullish
  • MA 20: 92.76 | Negative Crossover | Bearish
  • MA 50: 91.84| Positive Crossover | Bullish

Simple:

  • MA 5: 92.60 | Positive Crossover | Bullish
  • MA 20: 92.75 | Negative Crossover | Bearish
  • MA 50: 92.43 | Positive Crossover | Bullish

RSI (Relative Strength Index): 50.22 | Buy Zone | Bullish

Stochastic Oscillator: 12.33| Sell Zone | Negative

Resistance And Support Levels: 

  • R1: 92.87 | R2: 95.18
  • S1: 91.21| S2: 88.79

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 93.64 | Take Profit: 95.18 | Stop Loss: 92.63.

SILVER:

XAG/USD sinks as rate hike rumours rattle markets

Silver (XAG/USD) is approaching its lowest price since March weighing down by a stronger U.S. dollar and rate hike chatter

The Federal Reserve has sent inconsistent signals to investors about the pace of interest rate increases.

In contrast, John Williams of the New York Fed suggests that the rate-hiking cycle may be coming to an end.

On Monday, silver (XAG/USD) is falling and testing its lowest level since March 13 due to a strengthening dollar and increased interest rate anticipation. A significant loss in September and the third quarter was followed by the decline.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 21.99 | Negative Crossover | Bearish
  • MA 20: 22.55 | Negative Crossover | Bearish
  • MA 50: 22.90 | Negative Crossover | Bearish

Simple:

  • MA 5: 21.98 | Negative Crossover | Bearish
  • MA 20: 22.70 | Negative Crossover | Bearish
  • MA 50: 22.93 | Negative Crossover | Bearish

RSI (Relative Strength Index): 30.00 | Sell Zone | Bearish

Stochastic Oscillator: 4.91| Sell Zone | Negative

Resistance And Support Levels: 

  • R1: 22.39 | R2: 23.25
  • S1: 21.52| S2: 20.38

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 21.13 | Take Profit: 20.38 | Stop Loss: 21.73.

Elsewhere In the Commodity Market.

Gold prices consolidate near multi-month low, awaits US ISM PMI and Fed Chair Powell’s speech. Natural Gas Dips Natural gas futures posted weekly, monthly, and even quarterly gains but ended the last trading day of September lower.

Gold down (0.75%) at 1834.55, Silver down (2.62%) at 21.59, Palladium down (0.84%) at 1234.50, Platinum down (0.66%) at 897.50, Brent Crude Oil up (0.79%) at 92.94, WTI Crude Oil up (0.76%) at 91.48 as of writing time.

Key Economic Events & Data Release Today:

(USD) Fed Chair Powell Speaks at 20:30.