. Weekly Commodity Analysis - Commodities Surge, Oil Wavers, Gas Rebounds.

Weekly Commodity Analysis – Commodities Surge, Oil Wavers, Gas Rebounds.

Weekly Commodity Analysis – Commodities Surge, Oil Wavers, Gas Rebounds.

24 Feb 2024

Introduction

Gold prices surge, poised to end the week in the green amidst lower US bond yields and a risk-on market mood. Investors flock to gold, defying safe-haven norms amid optimistic conditions. The uptrend is fueled by expectations of significant rate easing by year-end, aligning with the Fed’s cautious stance. Silver follows suit, propelled by Wall Street gains and declining US Treasury yields. Meanwhile, Crude Oil retreats below $77.00, facing resistance amid concerns over supply shocks from geopolitical conflicts. Natural Gas prices exhibit a bullish turn, hinting at a potential reversal and stabilization after a prolonged bearish trend.

Markets In Focus Today – GOLD

Gold price rallies, eyeing weekly finish in the green amid lower US bond yields.

Gold price surges, buoyed by a decline in US Treasury yields and optimistic market conditions.Risk-on mood prevails, yet Gold attracts investors, defying typical safe-haven asset trends.Market sentiment adjusts to Fed’s cautious stance with expectations of significant rate easing by year-end.Gold price resumes its weekly uptrend on Friday and is set to finish the week in the green, taking advantage of the fall in US Treasury bond yields amid quiet news flows. Federal Reserve officials continued to cross the wires, led by New York Fed President John Williams, who aligned with his colleagues’ recent comments. The XAU/USD exchanges hands at $2,038, up 0.70%.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2022.4846 | Positive Crossover | Bullish
  • MA 20 : 2023.3164 | Positive Crossover | Bullish
  • MA 50 : 2021.9786 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2014.9733 | Positive Crossover | Bullish
  • MA 20 : 2025.2927 | Positive Crossover | Bullish
  • MA 50 : 2033.6654 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 55.1426 | Buy Zone | Bullish

Stochastic   Oscillator : 69.3698 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 2069.3814 R2 : 2087.5486
  • S1 : 2010.5686 S2 : 1992.4014

Overall Sentiment : Bullish Market Direction : Buy

Trade Suggestion : Limit Buy : 2029.34 | Take Profit : 2057.48 | Stop Loss : 2015.27

SILVER

Silver Price Analysis: XAG/USD rallies amid risk-on mood, low US yields.

Silver jumps to $22.93, buoyed by gains on Wall Street and a decline in US Treasury yields.Technical analysis suggests a push above $23.00 needed to shift from bearish to neutral outlook.Key resistance ahead at 50-day, 100-day, and 200-day SMAs, with potential targets extending to $24.00.Silver prices advanced in the mid-North American session on Friday amid an upbeat market mood as depicted by Wall Street’s posting gains. That and a drop in US Treasury yields sponsored a leg-up in the grey metal. At the time of writing, the XAG/USD exchanges hands at $22.93, up by 0.86%.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 22.88 | Positive Crossover | Bullish
  • MA 20 : 22.71 | Positive Crossover | Bullish
  • MA 50 : 22.89 | Positive Crossover | Bullish

Simple :

  • MA 10 : 22.95 | Positive Crossover | Bullish
  • MA 20 : 22.71 | Positive Crossover | Bullish
  • MA 50 : 22.88 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 51.76 | Buy Zone | Bullish

Stochastic   Oscillator : 57.56 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 23.36 R2 : 24.15
  • S1 : 22.63 S2 : 21.88

Overall Sentiment : Bullish Market Direction : Buy

Trade Suggestion : Limit Buy : 22.87 | Take Profit : 23.42 | Stop Loss : 24.15

CRUDE OIL

Crude Oil falls back into familiar bottoms on Friday pullback, WTI cracks $77.00 once again.

WTI has returned to territory below $77.00 five times in eight days.Crude Oil markets are getting pushed back into the low side of rough congestion.Analysts expect OPEC to extend Q1 cuts through Q2.West Texas Intermediate (WTI) dipped back below $77.00 on Friday as energies pull back from recent bullish momentum which failed to crack into meaning high territory. WTI is set to wrap up the trading week near $76.50, a region that US Crude Oil has been struggling to break from since rising into the zone on February 9.Crude Oil markets remain concerned about possible supply shocks as the Israel-Palestinian Hamas conflict in Gaza rolls on, and Yemini Houthis backed by Iran continue to target civilian cargo ships in the Red Sea despite the presence of a coalition naval fleet between the US and the UK.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 77.3861 | Negative Crossover | Bearish
  • MA 20 : 76.6318 | Negative Crossover | Bearish
  • MA 50 : 75.8080 | Positive Crossover | Bullish

Simple :

  • MA 10 : 77.7853 | Negative Crossover | Bearish
  • MA 20 : 76.3942 | Positive Crossover | Bullish
  • MA 50 : 74.5142 | Positive Crossover | Bullish

RSI (Relative Strength Index) : 51.1931 | Buy Zone | Bullish

Stochastic   Oscillator : 73.2525 | Buy Zone | Negative

Resistance   And Support Levels :

  • R1 : 78.6054 R2 : 80.9659
  • S1 : 70.9639 S2 : 68.6034

Overall Sentiment : Neutral Market Direction : Buy

Trade Suggestion : Limit Buy : 75.43 | Take Profit : 78.74 | Stop Loss : 73.58

NATURAL GAS

Natural Gas Prices Bullish Turn as Output Cuts Spur Weekly Reversal.

U.S. natural gas prices, following a prolonged bearish trend, are showing signs of stabilization and potential upward momentum. The market is poised to conclude the week on a higher note, hinting at the emergence of a solid foundation for future growth.The initial rally earlier this week, primarily driven by short-covering, was a necessary step in reversing the downtrend. However, the true test lies in the market’s response to the subsequent retracement. A successful attraction of buyers in the retracement zone could indicate that a robust bottom is forming, laying the groundwork for a bullish phase.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 1.7730 | Negative Crossover | Bearish
  • MA 20 : 1.9325 | Negative Crossover | Bearish
  • MA 50 : 2.2293 | Negative Crossover | Bearish

Simple :

  • MA 10 : 1.7136 | Negative Crossover | Bearish
  • MA 20 : 1.9422 | Negative Crossover | Bearish
  • MA 50 : 2.3364 | Negative Crossover | Bearish

RSI (Relative Strength Index) : 30.7590 | Sell Zone | Bearish

Stochastic   Oscillator : 23.5579 | Sell Zone | Negative

Resistance   And Support Levels :

  • R1 : 3.0654 R2 : 3.3340
  • S1 : 2.1960 S2 : 1.9274

Overall Sentiment : Bearish Market Direction : Sell

Trade Suggestion : Limit Sell : 1.74 | Take Profit : 1.53 | Stop Loss : 1.87

Elsewhere In The Commodity Market

Gold up (0.56%) at 2035.43, Silver up (0.92%) at 22.94, Palladium up (0.41%) at 975.25, Platinum up (0.13%) at 901.75, Brent Crude Oil up (2.50%) at 81.58, WTI Crude Oil down (2.60%) at 76.57 as of writing time.

Key Economic Events & Data Release Today:

(USD) Building Permits (Monday) (USD) Core Consumer Confidence (Tuesday) (NZD) RBNZD Interest Rate Decision (Wednesday) (NZD) RBNZ Rate Statement (Wednesday) (USD) GDP (QoQ) (Q4) (Wednesday) (AUD) Retail Sales (MoM) (Jan) (Thursday)