Commodity Market Watch 29 July 2024 – 01 August 2024

Commodity Market Watch 29 July 2024 – 01 August 2024

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

Article by: ETO Markets

This week, the forex market has been particularly focused on the Federal Reserve's (Fed) interest rate decision. Although the Fed decided to maintain the current interest rate levels, the US dollar showed a somewhat weak performance globally, which provided support to major currency pairs like the EUR/USD. Additionally, Fed Chair Jerome Powell hinted that a rate cut in September might be considered if inflation continues to remain near target levels, further influencing market sentiment. 

In Europe, the latest inflation data shows that inflation levels are still rising, adding more uncertainty to the upcoming policy meeting of the European Central Bank (ECB). Investors remain cautious about the ECB's potential interest rate adjustments at its next meeting, especially against the backdrop of a slight increase in inflation. 

In Australia, the latest economic data indicates that, despite a trade surplus that exceeded expectations, the impact on the Australian dollar has been relatively limited. The market adopts a wait-and-see attitude towards potential adjustments in monetary policy by the Reserve Bank of Australia (RBA), particularly after the release of inflation and employment data, anticipating that the RBA may not raise rates further in the short term. 

Global geopolitical risks, including tensions in the Middle East and uncertainties in US-China trade relations, continue to affect market sentiment, leading to a reduced appetite for risk assets. Under these combined factors, the demand for safe-haven assets remains stable. 

During Friday's Asian session, gold prices rose to $2,450 per ounce. Concerns about the U.S. employment data, continued economic weakness, and escalating Middle Eastern geopolitical tensions have driven safe-haven demand for gold. Dovish remarks from the Federal Reserve also support the likelihood of gold reaching new highs. Technically, breaking above $… seems inevitable, with bullish sentiment potentially extending to the $… -$… range. Each price dip is seen as a buying opportunity, with the recent low around $… now acting as a support level. In the short term, sellers are struggling to regain control.

West Texas Intermediate (WTI) crude oil prices edged higher during the Asian session on Friday. Despite ongoing global concerns about oil demand, the escalating geopolitical tensions in the Middle East, which pose supply risks, may support oil prices. Weak Purchasing Managers' Index (PMI) data from the U.S. and China have heightened concerns about oil demand. The U.S. July ISM Manufacturing PMI fell to an eight-month low of …, down from … and below the expected …. Similarly, China’s July Caixin Manufacturing PMI came in at …, lower than the expected … and previous …. Last week’s low of $… per barrel will act as a support level for XTI/USD in the near term, while the July 5 high of $… will serve as a significant resistance.

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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.


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
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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.


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.


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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