Commodities

The commodity posted its worst day in nearly two years yesterday, but it finds support during today’s European session

Gold has pulled back today, giving the weekly candle an inverted hammer appearance. The weekly candle is still to open, but the selling tail does coincide with an overbought condition.

The US President announced today an embargo of oil imports from Russia, escalating a series of sanction that were imposed as a retaliation for the invasion in Ukraine

The safe-haven has entered its second straight profitable week, hitting today its highest price since August 2020

Oil remains a critical important factor. If supply shocks continue, it's high stakes, with stagflation a distinct possibility.

Oil gapped up on open, with Brent crude reaching $130.67 and WTI's high at $127.53. The price jumps reflect fears of supply disruptions due to the Russian invasion of Ukraine, with the possibility of a ban on Russian oil and natural gas now being considered.

Wheat prices have escalated as the Russian invasion of Ukraine continues. Prices have traded limit up two days in a row and three times since the invasion began. Both Russia and Ukraine are major exporters, with Russia contributing to 17% of the international wheat trade and Ukraine at 12%.

Oil prices continue to rally as the war in Ukraine enters its second week and Western sanctions against Russia begin to bite, while OPEC stack to its output plan

The current price action is an inside period (the weekly candle is still to complete). I.e., the week's high and low are within last week's range. Neither the bulls nor the bears have taken the price to a new high or low, suggesting indecision amongst market participants.

The Russia-Ukraine war remains in the spotlight, while investors are also on the lookout for any news around Iran nuclear negotiations

Gold, being a haven and considered a store of value, maintains a bid as geopolitical tensions escalate following further sanctions on Russia.