Commodities

XAU/USD runs its second losing week as Middle East fears appear contained and the greenback finds support after the Fed-fueled slump

Copper rallied as economic data came in stronger over the course of last week. Core PCE continued to show a decline in inflation, albeit the decline is slowing. October flash PMIs were good with the flash manufacturing PMI moving above 50, signalling expansion and the flash services PMI remaining above 50. Q3 GDP came in hotter-than-expected at 4.9% vs 4.5% with Core Durable Goods also showing strength.

Using UKOil (FXCM’s Brent CFD) as a general reference, the heat that drove oil prices in August and September has declined. The stochastic, a measure of momentum, has dropped below 80 and is angled down (red rectangle). Last week’s candle looks to have charted a lower peak, hinting at the cooling down in the energy market. However, to confirm the lower peak, this week’s candle will need to close below…

Gold has been running hot since hostilities began between Israel and Hamas on 7 October. In effect, the market is favouring it as a safe haven given the intricacies of the conflict and the danger that it may spread regionally. To this end, XAUUSD has broken above its green sloping downtrend line and its weekly RSI has popped above 50, which is the bullish side of the indicator. If the…

The Middle East conflict has boosted USOil, but the commodity comes under pressure today, after the US lifted sanctions on Venezuelan oil

Last week’s movement by gold has changed its technical position. The candlesticks have moved above the 30-week EMA and the EMA has bullishly turned up. Moreover, the weekly RSI has popped above 50 (green rectangle) which is the bullish side of the indicator. The longer it maintains above 50, the greater the momentum support for the yellow metal. Another positive is that gold’s candlesticks have broken out above the green…

XAU/USD eases after its best week in ten months, which was sparked by safe-haven flows to the Hamas-Israel war

Capital is rotating into havens such as gold and bonds and pushing the price of crude higher, as Israel seemingly prepares for its ground offensive against Hamas. Israel’s military told Palestinians today to start evacuating northern Gaza and move to the southern part of the territory. Consequently, market participants are on edge as the conflict looks to escalate, following Israel’s retaliation for the brutal Hamas attack that took place in…

UKOil retraced significantly towards its end-of-August low (green dashed horizontal) before finding support. Monday saw significant upside when the market opened following Saturday’s brutal attack by Hamas on Israel and the start of a new Middle East conflict. Nerves still abound that the conflict may spread in the region affecting supply lines, and risk premiums are keeping the oil price supported.

USOIL got a boost on Monday after the armed conflict erupted in the Middle East, but now turns cautious as markets contemplate the potential impact on supply and demand

NGAS extended its gains on Monday due to the Hamas-Israel conflict, but turns cautious today as EIA expects a slowdown in global demand growth ahead and warns of potential market volatility