Commodities

The Organization of the Petroleum Exporting Countries and its allies did not offer any surprises yesterday, as they stack to their output plan

The precious metal plunged at the start of the year and registered its biggest daily loss since November, due to the Dollar’s strength and the rise in US treasury yields

Gold (chart A) has effectively moved sideways on an absolute basis since July 2020 (area between blue verticals). Of interest, this has tracked a similar trajectory for FXCM's USDOLLAR basket (Chart B). As such, and with no surprise, the relative strength ratio (Chart C) between the two reflects neutrality in performance (USDOLLAR has slightly outperformed XAUUSD, as per the positively sloped red dashed line in chart C). The green dashed…

The final week of the year starts on the back foot, as fears over the omicron variant and a recent string of flight cancellations weigh on the commodity

Oil prices are showing signs of life following a larger drawdown in US Inventories than forecast. Crude stocks were down by 4.7m barrels, larger than the 2.4m expected. Oil, in general, is also benefitting from the switch by European utilities to heating oil from natural gas to contain costs. The market is also been buoyed by a study out of South Africa that suggested a lower risk of serious illness…

The commodity started the week on the back foot and today it consolidates, following the monthly reports from OPEC and IEA

The chart below on the left is gold's daily time frame. Price is moving into the area of weakness, between the lower blue and lower red bands. The daily stochastic has dropped below 20 (blue rectangle). As long as the stochastic maintains these levels, the precious metal is likely to be under pressure. In this regard the heikin ashi candle, which helps determine trend, has turned red over the last…

Since its launch circa 2009, Bitcoin (BTC) has been the benchmark of the cryptocurrency asset class. Active crypto traders from Japan to New York have bought and sold BTC in a variety of markets, namely the physical and cash exchanges. Over time, a multitude of new Bitcoin futures products were introduced to the financial world. Market participants are able to trade digital assets on a variety of platforms. The most…

The commodity finds support during the European hours and tries to stay in profitable territory, following its very good start to the week

In our previous article, we suggested weakness in the XAUUSD daily chart. The below left shows the daily gold heikin ashi chart. Heiken ashi candles are trend-following indicators. In this regard, there is a big red movement down into our area of weakness between the lower blue and lower red bands. We draw attention to the daily stochastic which is positioned in the lower quintile (blue rectangle). Interestingly, the last…