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Free AccessCOMMODITIES: WTI Crude Falls, Precious Metals Decline Amid Dollar Gain
- Crude has extended the fall on the day but is up around 1.3% on the week. The market is weighing any potential impact of new US energy policies, uncertainty around 2025 OPEC+ production, and abating supply risks associated with Hurricane Raphael.
- WTI Dec 24 is down by 2.7% today at $70.4/bbl.
- A bearish theme in WTI futures remains intact, with attention on $65.99, the Oct 1 low, and $64.16, the Sep 10 low and key support.
- Against the backdrop of a stronger dollar today, spot gold has fallen by 0.8% to $2,686/oz, leaving the yellow metal 1.8% lower on the week.
- Despite this week’s dip, UBS analysts say that gold will likely see support as a hedge against the inflationary pressures of higher US government borrowing.
- From a technical perspective, the trend condition remains bullish and the latest pullback is considered corrective.
- Attention is on a key support at $2,647.4, the 50-day EMA. For bulls, a reversal higher would refocus attention on the bull trigger at $2,790.1, the Oct 31 high.
- Meanwhile, silver has underperformed, falling by 2.5% today and 3.8% on the week, to $31.2/oz.
- Copper has also fallen by 2.8% $430/lb, amid disappointment on Chinese stimulus news, which revealed no firm signals of fresh consumption support.
- For copper, initial support is at $422.60, the Nov 6 low, followed by $415.93, a Fibonacci retracement point. Clearance of this level would strengthen a bearish theme.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.