Commodity Market Watch 20 – 24 November 2023

Commodity Market Watch 20 – 24 November 2023

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

Article by: ETO Markets

The Japanese yen extended its downward trend for the second day in a row, giving up some of its recent substantial gains versus the US dollar. Better-than-expected US job market data and an increase in consumer inflation expectations helped the USD pull away from its lowest level since late August against the backdrop of Tuesday's hawkish FOMC minutes. As a result, the USD/JPY pair was able to continue its strong rebound from the 147.15 region, or from a two-month low that was struck on Tuesday.

US Jobless Claims data released on Wednesday showed a greater-than-expected decline in Initial Claims for the week ending on November 17, falling from 233K to 209K. Furthermore, October's Durable Goods Orders fell 5.4% as opposed to the projected 3.1%, which was a bigger decrease than anticipated. The University of Michigan Consumer Sentiment Index for November, however, beat forecasts and came in at 61.3 rather than 60.5.

On Thursday, the UK's preliminary S&P Global / CIPS Purchasing Managers Index data for November will be made public. Additionally, Thanksgiving Day, US markets will be closed. The preliminary S&P Global Manufacturing and Services PMI for November will be released in the US on Friday; a drop is anticipated.

The largest oil exporter in the world, Saudi Arabia, intends to continue reducing oil output by one million barrels per day until the end of the year, and other OPEC+ members are also thinking about reducing production in reaction to falling oil prices. The market climate, however, was challenging for the next conference due to escalating tensions over the Israel-Hamas conflict and a slower-than-anticipated rebound in Chinese demand.

After rising sharply on Tuesday and getting close to the crucial $2,010 resistance zone, spot gold fell down. The fall continued into the American session, suggesting that there could be further downside, if it happens gradually for the time being. There is still bullish potential underneath the yellow metal. US data revealed a drop in both initial and continuing claims as well as a bigger-than-expected dip in durable goods orders in October. 

Technical indicators have shifted south, although XAU/USD is still above an upward trendline on the 4-hour chart. Bearish signs are even being given by the MACD, as the RSI is still declining from over 70. At $…, the 20-SMA has provided support for gold thus far. In order to prevent a more serious deterioration in the outlook, a loss below this level would enhance the negative pressure and expose the $… region as well as a short-term rising trendline that should hold. Another approach to the $… barrier might take place if the price bounces back to $...

The largest oil exporter in the world, Saudi Arabia, intends to continue reducing oil output by one million barrels per day until the end of the year, and other OPEC+ members are also thinking about reducing production in reaction to falling oil prices. The market climate, however, was challenging for the next conference due to escalating tensions over the Israel-Hamas conflict and a slower-than-anticipated rebound in Chinese demand.

The WTI's Wednesday dip dropped US Crude Oil momentarily fell below $… before it pared away much of the day's losses to retest the $… mark. Crude Oil has a history of abrupt chart decreases. Even with the late-day bounce on Wednesday, WTI is still trading near the 200-DMA, indicating strong selling pressure. WTI is currently trading at a five-month low of roughly $…, and last week's peak, which was just below $…, will be the immediate ceiling.

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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.
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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

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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.

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