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The Commodity Report – 13 June 2019

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Barry Dumas
GOLD-TECHNICAL-TRADE-NOTE-GT247-TRADING-TIP

The commodity market has become the “go-to” for investors when the equity markets take strain and this time around it is no exception. Global economic growth fears have escalated yet again as the U.S-China trade negotiations continue and the U.S FED makes its decision on interest rates amid weaker inflation data.

Gold

Commodities like Gold are the safe havens of choice when it comes to uncertainty in the international markets and that is evident in the current rise in the precious metal. The Gold (XAU) price has risen close to 4% since the start of the month as the U.S-China trade war fears pick up steam.

Some technical points to look out for on Gold (XAU):

  • The price action has gained momentum after the descending triangle upward breakout which has also reached its Technical Analysis target price.
  • We might see the yellow metal push even higher back to $1350/ ounce if market fears persist.
  • The next major technical resistance level price will encounter would be the $1350/ ounce price level and will be watched closely.

XAU Curncy GT247 Bloomberg

Source - Bloomberg

Oil

The Oil market has not been spared by the U.S-China trade war uncertainty as can be seen in the decline in Oil prices despite the OPEC + nations supply cuts.

The recent Oil inventories release placed a damper on the price of WTI and Brent as Crude Oil prices fell as much as 4% as stockpiles continued to increase. Crude inventories rose by 2.2 million barrels from the analyst expected decline of 481 000 barrels.

The Oil market rose quite significantly this morning as news broke that two Oil tankers were attacked in the Gulf of Oman and that the tankers were on fire. Crude rebounded over 4% but gave back some earlier gains as news trickles in.

Some technical points to look out for on Brent Crude Oil:

  • Brent Crude Oil’s price action has dropped significantly since the highs we saw in mid-April 2019 when the price nearly reached $75/ barrel.
  • Price has found support at the $59.11/ barrel and might encounter resistance at the $64.16/ barrel price level.
  • The Relative Strength Index (RSI) indicator shows that the price action has reached over sold levels, but this might continue if the price does not clear the resistance level at $64.16/ barrel.

CO1 Comdty GT247 Bloomberg

Source - Bloomberg 


Disclaimer:

Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. GT247.com does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information which we receive from third party data providers. You must rely solely upon your own judgment in all aspects of your trading decisions and all trades are made at your own risk. GT247.com and any of its employees will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.

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