Commodities

The precious metal rose to the highest levels since May on Monday, driven by hopes of a Fed pivot, but consolidates its gains today

FXCM’s Brent and WTI CFDs, UKOil and USOil, have moved into their neutral zone between the blue bands. This is a movement of strength. China is opening its borders for the first time in 3 years. This is part of its new Covid-19 policy.

Oil has been clobbered over the last two trading days. UKOil, FXCM’s Brent CFD, and USOil, its WTI CFD, have both fallen into their bearish channels between the lower blue and red bands. If the red Bollinger bands expand, volatility will be increasing

Gold continues to climb, notching up prices last seen in June of last year. The precious metal is positioned between its upper blue and red bands on its daily chart. This is its bullish channel. Its daily stochastic has crossed above 80 (green rectangle). Maintaining these levels will imply that a bullish underlying momentum is present and the greater the prospect for higher prices. Gold’s strength corresponds with dollar weakness…

The commodity extends its gains and pushes for another profitable week, helped by a big draw in US oil inventories

The daily gold chart has charted a series of higher troughs followed by higher peaks (green zig-zags). We regard this as an uptrend. The precious metal may look to chart its next daily impulse up (daily +ve impulse scenario). We consider the hourly chart. Following the BoJ’s announcement that it will defend the 50bps level, up from the 25bps level, the precious metal’s trend-following EMAs and the momentum based stochastic…

USOil started the week with a three-day relief rally on demand optimism, but slides since yesterday after the Fed pointed to more rate hikes ahead

The commodity recovers from Friday’s 2022 lows, helped by the fact that the Keystone pipeline remains closed, as markets brace for the US inflation update and the Fed’s policy decision

XAU/USD makes a cautious start to the week, as markets gear up for the US CPI inflation update and the latest interest rate decision by the Federal Reserve

The daily gold chart trades between its upper blue and red bands in its bullish channel. The longer it maintains this position, the more bullish the precious metal is. The hourly chart has pulled back to a confluence of price support on the central pivot (green-shaded horizontal). To test a price reaction, we want to see both the hourly EMAs and stochastic turn positive. If this happens and the hourly…

The commodity is in a tough spot again this week, despite an easing of the strict Covid-19 rules, as today’s trade data from the world’s biggest importer of oil disappoint