Commodities

Markets turn to the safety of gold, as the deadly attack of Hamas on Israel and the country’s retaliation, spark risk aversion

Oil prices rise and stocks of energy giants get a boost, while those of major airliners drop, after Palestinian group Hamas launched a multi-pronged attack on Israel, reigniting conflicts in the Middle East

Oil has dropped substantially this week and particularly over the last twenty-four hours. Currently, Brent crude (UKOil) is down around 8.6% for the week and is trading near $84, and WTI (USOil) is down 9.2% for the week to trade near $82.45.

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.