- Gold steadies near two-week high, surpassing $2,050 as rate cut bets soften the dollar.
- Nonfarm payrolls data eyed, with implications for the Fed's interest rate trajectory.
- Spot gold up 0.1%, futures also rise; both poised to break losing streaks on rate cut expectations.
- Markets price in May rate cut, boosting bullion; further cuts anticipated by analysts.
- Fed's Powell signals rate declines, aiding gold's appeal; payrolls to guide rate decisions.
- Copper falls on China's economic data, signaling continued manufacturing contraction.
- Oil climbs post-OPEC+ decision to maintain output policy, yet weekly losses loom.
- Interest rates peak, according to Fed, potentially spurring growth and oil demand.
- Middle East tensions affect oil prices, with ceasefire reports and Red Sea shipping disruptions observed.
Commodities Trading Signals
Intraday Forex Signal - Date: February 2, 2024
Asset: XAUUSD (Gold)
Pivot Point: 2,052.733
Trade Direction: BULLISH
Trade Confidence: High - Gold prices have steadied near a two-week high, with the market positioning for rate cuts later in the year, despite the Fed's signals for later-than-expected cuts.
Yesterday's Trend:
Gold prices saw a rise, brushing off Fed signals and capitalizing on a weaker dollar, moving closer to the 2024 peaks.
Market Trend Analysis:
- Volatility: Expected to be influenced by the nonfarm payrolls data release later today.
- Technical Indicators: Gold crossed the significant $2,050 level, indicating strong bullish sentiment.
- Fundamental Analysis: Market anticipates a 25 basis point rate cut by May, as per the CME Fedwatch tool, which is beneficial for gold prices. Additional rate cuts are expected post-May, per Goldman Sachs analysts.
- Economic Data: Nonfarm payrolls data is expected to impact the Fed's rate decision, with a cooling labor market potentially leading to interest rate cuts.
🎯 Profit Targets
- Buy:
- 1st Target (1st Resistance): 2,066.967
- 2nd Target (2nd Resistance): 2,079.373
- 3rd Target (3rd Resistance): 2,093.607
❌ Stop Loss Guidelines
- Buy: Set the stop loss at 2,040.327, just below the first support level.
Suggestion:
Based on the bullish sentiment and the anticipation of interest rate cuts, a buy position is suggested for gold, aiming for the first resistance level with a stop loss set below the first support level to manage risk.
Viewpoint recap:
The gold market is demonstrating bullish behavior as it navigates through macroeconomic signals and prepares for key economic data releases. The anticipation of rate cuts provides a favorable backdrop for gold prices. As always, economic data releases and market sentiment should be monitored closely for any trading adjustments.
Intraday Forex Signal - Date: February 2, 2024
Asset: XAG/USD (Silver)
Pivot Point: 23.097
Trade Direction: BEARISH
Trade Confidence: Moderate - The RSI and MACD indicate a neutral to slightly bearish sentiment. The price below the Ichimoku Cloud may suggest a bearish trend.
Yesterday's Trend:
Silver showed signs of consolidation, with no significant breakout, indicating indecision in the market.
Market Trend Analysis:
- Volatility: Likely to be moderate but reactive to any significant economic news.
- Technical Indicators: Price below the Ichimoku Cloud and neutral RSI/MACD readings suggest a cautious bearish stance.
- Market Dynamics: The silver market's direction may be swayed by broader economic factors, particularly any shifts in industrial demand or changes in the strength of the dollar.
🎯 Profit Targets
- Sell:
- 1st Target (1st Support): 22.942
- 2nd Target (2nd Support): 22.737
- 3rd Target (3rd Support): 22.583
❌ Stop Loss Guidelines
- Sell: Set the stop loss at 23.302, just above the first resistance level.
Suggestion:
Given the current indicators, initiating a bearish position could be considered, with targets set at the first support level and stop loss slightly above the first resistance level. As with any trading strategy, it is crucial to monitor the market for shifts that could impact the bearish forecast, such as unexpected economic data or market events.
Viewpoint recap:
Silver's current position suggests moderate bearish potential. Traders should be mindful of the key technical levels indicated and be prepared to adjust strategies in response to market movements or economic data releases. Risk management remains a priority to navigate potential volatility.
Intraday Forex Signal - Date: February 2, 2024
Asset: WTI (West Texas Intermediate Crude Oil)
Pivot Point: 74.827
Trade Direction: BULLISH
Trade Confidence: Moderate - RSI is above the midpoint, and MACD is trending upward, indicating potential bullish momentum. However, vigilance is required due to market volatility and external factors influencing oil prices.
Yesterday's Trend:
WTI showed a recovery trend, potentially signaling an upturn in sentiment.
Market Trend Analysis:
- Volatility: Likely to remain high with sensitivity to geopolitical events and OPEC+ decisions.
- Technical Indicators: RSI and MACD suggest a bullish trend, with the price potentially rebounding from recent lows.
- Fundamental Analysis: OPEC+ decisions to maintain output levels and geopolitical tensions can impact oil prices.
🎯 Profit Targets
- Buy:
- 1st Target (1st Resistance): 75.943
- 2nd Target (2nd Resistance): 78.067
- 3rd Target (3rd Resistance): 79.183
❌ Stop Loss Guidelines
- Buy: Set the stop loss at 72.703, just below the first support level.
Suggestion:
The indicators suggest a bullish position for WTI, targeting the first resistance level with a stop loss placed below the first support level. Traders should monitor oil-related news closely, including OPEC+ meetings and geopolitical developments, as these could cause significant price fluctuations.
Viewpoint recap:
WTI's current position indicates a moderate bullish signal, with external factors playing a significant role. Market participants should be prepared for volatility and employ risk management strategies to navigate the inherent uncertainties in the oil market.
Intraday Forex Signal - Date: February 2, 2024
Asset: Brent Oil
Pivot Point: 79.193
Trade Direction: BULLISH
Trade Confidence: Moderate - The RSI is slightly above the midpoint, and the MACD is above its signal line, both suggesting a possible upward movement. However, the proximity to the Ichimoku Cloud indicates a need for caution as the trend could easily reverse.
Yesterday's Trend:
Brent Oil prices displayed a rebound, suggesting a potential bullish correction after recent declines.
Market Trend Analysis:
- Volatility: Expected to be influenced by global economic indicators and geopolitical news.
- Technical Indicators: RSI and MACD indicate a potential for upward movement, but the market remains cautious.
- Fundamental Analysis: Oil prices are sensitive to OPEC+ output decisions and geopolitical tensions which need to be monitored closely.
🎯 Profit Targets
- Buy:
- 1st Target (1st Resistance): 79.317
- 2nd Target (2nd Resistance): 79.563
- 3rd Target (3rd Resistance): 79.687
❌ Stop Loss Guidelines
- Buy: Set the stop loss at 78.947, just below the first support level.
Suggestion:
A cautiously bullish position is suggested for Brent Oil, aiming for the first resistance level with a stop loss placed slightly below the first support level. Traders should remain vigilant and respond to oil market news and OPEC+ decisions, as these can have significant impacts on oil price movements.
Viewpoint recap:
Brent Oil's trading signals suggest moderate bullish confidence with a cautious outlook. Traders should consider broader market conditions, including supply concerns and geopolitical events that may affect oil prices, while employing risk management strategies to navigate potential market volatility.
Intraday Forex Signal - Date: February 2, 2024
Asset: Copper
Pivot Point: 3.865
Trade Direction: BEARISH
Trade Confidence: Moderate - Copper prices are showing a potential downward trend, as indicated by the recent dip below the Ichimoku Cloud, and the RSI is hovering around the midpoint without clear directional strength. The MACD is slightly above the signal line but does not show strong momentum, suggesting cautious bearishness.
Yesterday's Trend:
Copper prices were wavering within a tight range, indicating uncertainty in the market trend with a slight bearish inclination.
Market Trend Analysis:
- Volatility: Likely moderate, with potential for increased movement upon the release of significant economic data or news.
- Technical Indicators: The current position below the Ichimoku Cloud may indicate a bearish trend, but the lack of strong momentum in RSI and MACD calls for caution.
- Fundamental Analysis: The overall market sentiment is cautious due to economic recovery concerns in major importer China, affecting copper demand expectations.
🎯 Profit Targets
- Sell:
- 1st Target (1st Support): 3.833
- 2nd Target (2nd Support): 3.813
- 3rd Target (3rd Support): 3.781
❌ Stop Loss Guidelines
- Sell: Set the stop loss at 3.886, just above the first resistance level.
Suggestion:
A sell position is recommended for Copper with a primary target at the first support level, incorporating a stop loss just above the first resistance level to manage risk. Traders should monitor economic indicators from China and global market trends that can influence copper prices.
Viewpoint recap:
The analysis of Copper suggests a cautious approach to a bearish trend. Market participants should keep an eye on China's economic data and other global events that could impact the commodity's price, and be prepared to adjust positions as needed.
Disclaimer: These Commodities Trading Signals are based on the current charts and market conditions. Always conduct your own analysis and consider risk management strategies before entering any trade. Markets are dynamic, and conditions can change rapidly.
As with all investments, your capital is at risk. Investments can fall and rise and you may get back less than you invested.