Commodity Market Watch 11 March 2024 – 15 March 2024

Commodity Market Watch 11 March 2024 – 15 March 2024

Gold bars on a red background with a bar graph, representing the AI trading market and the commodities news.

Article by: ETO Markets

The price of gold fails to build on the day's gains and moves in a narrow range. The Federal Reserve may postpone interest rate reductions, according to rumours fuelled by a strong US inflation report, which keeps the returns on US Treasury bonds high. This helps the US Dollar draw in some buyers, which, together with the general risk-on sentiment, limits the precious metal's upside potential under overbought daily chart conditions. 

Nonetheless, the markets continue to factor in a higher likelihood that the Fed would start reducing interest rates during the June policy meeting. Aside from this, geopolitical threats resulting from the ongoing conflict in the Middle East and Russia-Ukraine may continue to support the price of gold. Ahead of the critical FOMC meeting the following week, which is expected to provide clues about the Fed's route toward rate cuts and identify the next leg of a directional move for the non-yielding yellow metal, traders may also opt to stay out of the market. 

A surprising drop in US Crude stocks is blamed for the spike in oil prices, indicating a strengthening of demand. Oil prices have also increased due to worries about possible supply interruptions brought on by Ukrainian raids on Russian refineries.

The Australian Dollar loses its intraday gains on Thursday and enters negative territory. The Federal Reserve is expected to start cutting interest rates in June, which is why the AUD/USD pair rose, even if the Reserve Bank of Australia is still indicating that it might need to boost rates even more. Australia's inflation is largely "homegrown" and "demand-driven," resulting from rising wage inflation and a robust labour market. The Reserve Bank of Australia believes that inflation won't return to target until 2026.

After a 0.8% decrease in January, US retail sales are predicted to increase by 0.8% in February. In the meantime, February saw a 1.1% YoY growth in the US PPI as opposed to a 0.9% increase the prior month. It seems unlikely that the US consumer demand and any indications of sticky inflation will be good news for the price of gold.

In order to move the price of gold toward Tuesday's high of $…, beyond which the all-time highs of $… will be retested, buyers are waiting for an entry over $... The psychological level of $… and the $… barrier represent the next important upside targets.

On the other hand, the initial demand region is observed at the $… low on Wednesday. If that level is not held, the previously noted strong support will be put to the test once more at $...

A surprising drop in US Crude stocks is blamed for the spike in oil prices, indicating a strengthening of demand. Oil prices have also increased due to worries about possible supply interruptions brought on by Ukrainian raids on Russian refineries.

Oil security was highlighted by the International Energy Agency (IEA), and the Organization of the Petroleum Exporting Countries (OPEC) expressed gratitude for the statements. The IEA gave advice to developed countries, noting recent disagreements with OPEC over matters including long-term demand and the need to invest in new supplies.

The first-line resistance of $… at the top and the first-line support of $… at the bottom will be of particular interest to investors. Prior to making any adjustments, we will simultaneously consider both higher and lower breakthroughs.

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ETO Markets Limited ​is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023; ETO Group Pty Ltd., ABN 66 155 680 890, is a financial services company and regulated by Australia Securities & Investments Commission (ASIC), AFSL No. 420224.
The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

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Disclaimer

ETO Markets Limited ​is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023; ETO Group Pty Ltd., ABN 66 155 680 890, is a financial services company and regulated by Australia Securities & Investments Commission (ASIC), AFSL No. 420224.
The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

c

Disclaimer

ETO Markets Limited ​is registered in Seychelles with Company Number 850672-1 and authorised by the Financial Services Authority (FSA), Licence Number SD062; ETO Markets LLC is registered in Saint Vincent and the Grenadines with Company Number 3286LLC2023; ETO Group Pty Ltd., ABN 66 155 680 890, is a financial services company and regulated by Australia Securities & Investments Commission (ASIC), AFSL No. 420224.
The information provided on this website is general in nature only and does not constitute personal financial advice. Please note that investing in CFDs and Margin FX Contracts carries significant risks and is not suitable for all investors. You don’t own, or have, any interest in the underlying assets. Any information or general financial product advice given is generic in nature and does not take into account your financial situation, needs or personal objectives. Past performance is not a reliable indicator of future performance. Investing in leveraged products carries significant risks. We recommend that you seek independent advice and ensure that you fully understand the risks involved before trading. It is important that you read and consider our disclosure documents
(Privacy Policy & Risk Disclosure) before you acquire any product.

2024 ETO Markets | All rights reserved

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