Gold is Under Pressure but is Oversold in the Short-Term
A gold price top-down analysis.
Commodities are the objects of trade in commerce around the world. Gold, silver, oil: Commodities are the goods exchanged raw, rather than in a manufactured state. Commodities can be traded in physical states, as in gold bars, using futures and spot prices. Many traders, however, use electronic trading, as in EFTs, in lieu of physical shares, focusing instead on the spread of the buy and sell price. Dive deeper into commodity markets.
A gold price top-down analysis.
The US 10-year real yield continues to climb higher and is currently at 2.286%, largely due to the Federal Reserve’s narrative of “higher for longer.” This is adding headwinds to the risk market and driving money towards the safety of the dollar. This, in turn, is impacting on gold. The precious metal is moving inversely to the real yield. To this end, the correlation coefficient (bottom indicator) between gold and…
Pullback may set up a "dip in the uptrend" scenario.
USOil dropped last week after the Fed’s hawkish stance and fears over US government shutdown reignite, but supply curbs support prices
The commodity set fresh 2023 highs on Tuesday amidst tighter supply and drawing inventories, but slides today from its technically overbought territory
Gold is resilient ahead of the FOMC policy meeting.
Oil prices are rising today due to concerns about a potential supply shortage. Saudi Arabia and Russia announced they would continue reducing their oil production until the end of the year.
Oil prices are running strong today. Brent crude has topped $93 per barrel for the first time this year. WTI touched $90 per barrel, which is a 10-month high. Anticipation of a more constrained supply for the remainder of 2023 eclipsed worries about sluggish economic expansion and the increasing stockpiles in the United States.
Both UKOil and USOil have charted a higher trough followed by a higher peak, putting the CFDs into uptrend. UKOil is now trading over $90 a barrel and USOil at $87.20 per barrel. Moreover, their stochastics are also trading in their respective upper quintiles. This suggests that there is a strong underlying momentum that is supporting oil prices.
The commodity reached new year highs after forming a technical golden cross, also helped by soft US jobs data that strengthen the case for a Fed pause and improved sentiment around China’s property market
Country Garden’s default warning aggravated concerns over China’s property sector, but authorities announced action to lower mortgages, helping copper prices
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