Commodities Market Watch On Friday

Commodities Market Watch On Friday

Commodities Market Watch On Friday

WTI price slipped below 82 USD per barrel on Friday as investors took profits after a strong rally, but were still headed for a fourth straight weekly advance on signs that the market is tightening as global consumption withstands the impact from the omicron variant. Oil has now recovered most of the losses late last year that were driven by omicron and the US-led release of emergency reserves. A confluence of factors supported oil prices, including supply interruptions in Libya and Kazakhstan, concerns over the capacity of OPEC countries to deliver on planned increases and falling crude inventories in the US. Meanwhile, investors remained cautious of a potential hit to demand from Covid-related curbs and a drop in mobility in Asia, as well as prospects of aggressive US interest rate hikes.

WTI price slipped below 82 USD on Friday as investors took profits after a strong rally, but were still headed for a fourth straight weekly advance on signs that the market is tightening as global consumption withstands the impact from the omicron variant. First support on a decline will be 80.32 USD and first resistance to be tested is 85.37 USD.

Gold is trading firmly above 1,820 USD on Friday, and is set for its best weekly gain since November, supported by a weaker dollar and Treasury yields as investors unwound hawkish bets on the US rates outlook. The December consumer price index rose at the fastest pace in nearly four decades but failed to support the dollar and Treasury yields further, as it came in line with expectations and has largely been priced in by the markets. Federal Reserve chair Jerome Powell also dashed expectations of a more aggressive tightening in a Congressional testimony earlier this week. Meanwhile, investors remained cautious of a hawkish surprise as Fed governor Lael Brainard became the latest and most senior US central banker to signal that the Fed is likely to start raising interest rates in March.

Gold is trading firmly above 1,820 USD on Friday, and is set for its best weekly gain since November, supported by a weaker dollar and Treasury yields as investors unwound hawkish bets on the US rates outlook. The first resistance will be 1832 USD on a further rise and first support will be 1799 USD on a decline.

Fast rising gas price has fallen fast with demand loss. The first resistance to be tested is 4.00USD and first support on a decline is 3.90 USD Level.

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