Forecasts & Analysis | Commodities, Page

Demand for risky assets will also influence gold prices. U.S. equity indexes are starting to turn positive in the wake of stronger earnings data from Coca-Cola and United Technologies. A surge to the upside in equities could drive gold prices lower as it approaches a key technical zone at $1272.70

There were different opinions as to what fueled Monday’s strength. NatGasWeather said the gains came as weather data over the week-end trended “slightly cooler” for this upcoming weekend and early next week, showing “weak cool shots” across the Great Lakes and Northeast.

Dollar Index is close to the upper limit of its 6-months trading range. GBPUSD remains trapped between MA200 and 1.30. Oil has jumped at the start of the week by 3%: WTI – $66, Brent – $73.70.

President Trump has said in the past that he doesn’t want high oil prices and has called upon the Saudi’s to increase production. The last time he asked, they rebuked him. This time, Trump may be more insistent because high oil prices could slow down U.S. economic growth. 

Let’s cut to the chase as the energy complex has been the markets singular focus overnight and given oil prices far-reaching influence across global markets, so we might best be served to start with the meat and potatoes this morning.

Based on the early price action, the direction of the June Comex gold futures contract on Tuesday is likely to be determined by trader reaction to the pivot at $1277.50.

Natural gas rebounds but its a dead cat bounce

Gold slips despite weak US housing data

Silver markets tried to rally initially during the day on Monday but struggled to stay above the $15.00 level. By doing so, the market looks a bit vulnerable, as the large come around, psychologically significant figure continues to be crucial.

During the Asian session, there was news that perhaps the Americans were going to get rid of waivers for countries that are out buying Iranian oil. This of course rocked the oil markets, and we shot higher. However, the gains were somewhat muted after the initial surge, as we found

Natural gas markets rallied a bit during the trading session on Monday to open up the week, as we are at extreme lows. Because of this, we could be seeing the $2.50 level finally waking the market back up.

Gold markets initially tried to rally during the day on Monday but then found quite a bit of resistance above. That being the case, the market looks very likely to continue to show selling pressure above. However, we have a lot of technical support underneath so there’s a lot of

Based on the early price action, the direction of the June WTI crude oil futures contract the rest of the session is likely to be determined by trader reaction to the steep uptrending Gann angle at $66.15.

Fundamentals aside, today’s price action is likely to be driven by short-covering due to the increased volatility in the crude oil market. Oversold conditions are also a catalyst behind the early strength.

Essentially, crude oil gains could be limited or prices could retreat if Saudi Arabia decides to increase production to offset the lost Iranian crude oil.  

The key upside level to watch is $1285.50. Sellers are likely to come in on the first test of this level. However, prices could begin accelerating to the upside if buyers take out this level with conviction. That means a combination of short-covering and strong speculative buying.

We know many of you follow our research posts and have been waiting for the Gold/Silver setup we predicted would happen near April 21~24, 2019 back in January 2019. Well, it looks like our predictions were accurate and the current downward price rotation in Gold/Silver are the opportunities of

Based on last week’s price action, the direction of the June WTI crude oil futures contract on Monday is likely to be determined by trader reaction to the major Fibonacci level at $63.48.

Given the plethora of this week’s U.S. economic reports, it looks as if the direction of the gold market this week is going to be controlled by the U.S. Dollar. This week, the dollar should be impacted mostly by Durable goods with Advance GDP a close second.

Natural gas begins the week at its lowest price level in almost three years. The catalysts behind last week’s steep break is increased shale output, coupled with mild spring weather. However, most of all the rapidly shrinking storage deficit is quickly alleviating fears over a potential supply crunch next winter.