USOIL Clinches New Multi-Year Highs
The commodity was undeterred by US Dollar strength from the Fed’s tightening path and rises to its highest level since October 2014, helped by geopolitical tensions
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The commodity was undeterred by US Dollar strength from the Fed’s tightening path and rises to its highest level since October 2014, helped by geopolitical tensions
Oil is bid on the Russian-Ukraine tensions. UKOil, FXCM's Brent CFD, rose to a seven-year high, almost hitting $90/barrel. Other exacerbating issues are tight supply and Middle East geopolitical tensions between the Saudi-led coalition and the Iranian-backed Houthis. The weekly chart below (left) shows UKOil in its bullish zone between the upper red and blue bands. Both red Bollinger bands are moving upwards, which suggests an uptrend. The UKOil H4…
Middle East Tensions Crude prices have risen as tensions escalate in the Middle East. There is a fear of supply disruptions following an attack by Yemen's Houthi group against the UAE. The Houthis are aligned with Iran. whilst the UAE is a part of the Saudi Arabian-led coalition. The Houthis used missiles and drones, which exploded fuel trucks, killing three people, and started a fire near the Abu Dhabi airport.…
The commodity runs its fourth straight profitable week, having set two-month highs, but today its consolidates
Copper is one of the most ubiquitous, versatile and abundant metals. The red metal, as it's known, is corrosion-resistant, a good conductor of both heat and electricity, and can be molded into any number of shapes, sizes and thicknesses. As a result, people use copper in coins, jewelry, pipes, electric wiring, and musical instruments, among other things. Copper's use by humans dates back about 10,000 years. When combined with tin,…
Weekly Chart Oil prices rose off of the supply disruptions in Kazakhstan and Libya, effectively ignoring any demand scares from rising Omicron infections. The interruptions are due to protests in Kazakhstan affecting transport channels and pipeline maintenance in Libya. The weekly chart below shows that USOil has charted a higher trough, and, if it can push above 85 (aqua horizontal), will chart a higher peak. If this happens, USOil will…
The charts below show an interesting relationship between gold and bonds. The top chart is XAUUSD, the middle chart is IEF - iShares 7-10yr Bond ETF, and the bottom chart is the US 10 Yr. Treasury yield. The red trendline shows the period between the third quarter of 2018 to the middle of 2020. During this period, gold and bond prices both appreciated, whilst yields declined. The orange trendline represents…
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
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