Introduction:

In the world of commodities, Brent Crude Oil continues its impressive ascent for the third consecutive week, driven by a powerful combination of factors. Tightening supplies, resulting from Saudi Arabia’s production cuts, and growing optimism regarding Chinese demand, have propelled crude prices to their highest level in a decade. With supply concerns intensifying following Saudi Arabia and Russia’s decision to extend their supply cuts, the oil market is on an upward trajectory. Meanwhile, in the realm of precious metals, Gold has maintained its position above the crucial $1,900 mark, securing a weekly gain amid shifting economic dynamics. In this update, we delve into the latest developments in Brent Crude Oil and the enduring allure of Gold.

Brent Crude Oil:

Oil rises for the third week on tight supply, Chinese optimism.

On Friday, crude prices rose to a level not seen in ten months because of tightening supplies brought on by Saudi Arabia’s production cuts and confidence for Chinese demand.

Since Saudi Arabia and Russia this month announced an extension of their combined supply cuts of 1.3 million barrels per day through the end of this year, Fiona Cincotta, an analyst at City Index, said supply fears have continued to be a driving force for prices.

The price of oil has also increased this week due to better-than-anticipated industrial output and retail sales figures from China, whose economic situation is important for the balance of the year’s oil demand, according to Cincotta.

According to data released on Friday, processing at Chinese oil refineries increased by almost 20% from a year earlier as processors maintained high run rates to take advantage of the strong demand for oil products around the world.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 92.30 | Positive Crossover | Bullish
• MA 20: 88.40 | Positive Crossover | Bullish
• MA 50: 85.31| Positive Crossover | Bullish

Simple:

• MA 5: 92.11 | Positive Crossover | Bullish
• MA 20: 87.74 | Positive Crossover | Bullish
• MA 50: 84.82 | Positive Crossover | Bullish

RSI (Relative Strength Index): 77.67| Buying Zone | Bullish

Stochastic Oscillator: 100.00 | Buy Zone | Positive

Resistance And Support Levels: 

• R1: 94.07 | R2: 98.23
• S1: 90.96 | S2: 87.59

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 95.36 | Take Profit: 98.25 | Stop Loss: 93.38

Gold:

Gold notches weekly gain after continuous hold to $1,900.

Gold received another lifeline on Friday from the dollar’s first weekly decline in two months, which allowed it to stay onto $1,900 territory and record a slight weekly gain of its own.

After the headline reading for the U.S. Consumer Price Index surged past expectations for a second consecutive month, raising concerns about inflation and the potential for the Federal Reserve to raise interest rates again, spot gold’s ability to hold on to $1,900 support came under the spotlight this week.

After the European Central Bank on Thursday increased rates to a record high of 4% even as it hinted the increase would be its last, global markets are adjusting to a new outlook for rate hikes.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 1918.73 | Positive Crossover | Bullish
• MA 20: 1919.94 | Positive Crossover | Bullish
• MA 50: 1924.71 | Negative Crossover | Bearish

Simple:

• MA 5: 1915.18| Positive Crossover | Bullish
• MA 20: 1923.86| Positive Crossover | Bullish
• MA 50: 1924.13 | positive Crossover | Bearish

RSI (Relative Strength Index): 52.03 | Buy Zone | Positive

Stochastic Oscillator: 41.81 | Buy Zone | Positive

Resistance And Support Levels: 

• R1: 1936.22 | R2: 1987.66
• S1: 1896.56 | S2: 1867.62

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Buy: 1942.65 | Take Profit: 1987.66 | Stop Loss: 1913.71.

Elsewhere In the Commodity Market.

Natural gas futures increased this week because of greater power consumption in the United States than usual for this time of year, as late-night heat especially encouraged people to turn up their air conditioning at home even though fall weather is just about a week away.

XAG/USD soars by more than 2% to close the week. Copper prices rise on Chinese stimulus.

Gold up (0.68%) at 1923.56, Silver up (1.8%) at 23.02, Palladium down (0.44%) at 1245.50, Platinum up (2.4%) at 927.70, Brent Crude Oil up (0.61%) at 94.27, WTI Crude Oil up (1.15%) at 91.20 as of writing time.

Key Economic Events & Data Release for Upcoming Week:

(USD) Fed Interest Rate Decision (Wednesday)

(USD) FOMC Press Conference (Thursday).