Commodities Market Watch on Wednesday

Commodities Market Watch on Wednesday

Commodities Market Watch on Wednesday

WTI price held above 81 USD per barrel on Wednesday after rallying 3.8% in the previous session, as investors bought the dip in risk assets and industry estimates showed a draw in US stockpiles. The American Petroleum Institute reported that US crude inventories fell by about 1 million barrels last week, and if confirmed by official government data due later today, would be the seventh consecutive week of decline. Meanwhile, the rally in oil prices came alongside gains in raw materials and equities after Federal Reserve chair Jerome Powell said that rate hikes and tighter policy will be needed to control inflation, but did not announce an accelerated change in policy from what the central bank had already signaled. Investors were also confident that a tight market will continue to support oil prices, but remained concerned about the Covid situation in China where authorities maintained a zero-tolerance approach through strict lockdowns.

Gold firmed up above 1,810 USD on Wednesday after gaining sharply in the past two sessions, buoyed by recent weakness in the dollar and as the rally in US Treasury yields took a breather. The moves came after Federal Reserve chair Jerome Powell said that rate hikes and tighter policy will be needed to control inflation, but did not announce an accelerated change in policy from what the central bank had already signaled. Meanwhile, investors await US inflation data due later today to gain fresh insight on the likely direction of the economy and interest rates.

Gold firmed up above 1,810 USD on Wednesday after gaining sharply in the past two sessions, buoyed by recent weakness in the dollar and as the rally in US Treasury yields took a breather.  The first resistance will be 1832 USD on a further rise and first support will be 1799 USD on a decline.

 

WTI price held above 81 USD per barrel on Wednesday after rallying 3.8% in the previous session, as investors bought the dip in risk assets and industry estimates showed a draw in US stockpiles. First support on a decline will be 80.32 USD and first resistance to be tested is 85.37 USD.

 

The demand from Europe to US Gas is increasing as they have problem with Russian Gas so the prices are testing high levels. The first resistance to be tested is 4.34 USD and first support on a decline is 4.00 USD Level.

 

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