Commodities

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…

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…

Daily Chart Further to our previous article, XAUUSD's daily chart has turned bearish. The mid orange moving average has crossed below the longer red moving average (aqua ellipse). This puts the moving averages into a bearish formation. The stochastic is also in the lower quintile, suggesting an underlying bearish momentum. The longer the stochastic maintains this position, the greater the probability for lower prices ahead. If the longer red moving…

OPEC and allies decided not to diverge from their production plan and agreed yesterday to add 400K barrels/day on January, as they have been doing since August

The XAUUSD daily chart is not trending despite the emergence of the omicron covid variant. The news shook risk markets on Friday, but gold's price action was not able to capitalise. As the risk-off sentiment took hold, bulls pushed gold's price up. However, at the apex, they lost control to the bears, and the price closed well off of Friday's high (aqua arrow). Moreover, we have added a triple moving…