Commodities Market Watch on Wednesday

Commodities Market Watch on Wednesday

Commodities Market Watch on Wednesday

WTI crude futures held above $85 per barrel on Wednesday after gaining almost 3% in the previous session, amid rising tensions over Ukraine and as industry estimates showed a draw in US crude inventories. The API reported that US crude stockpiles fell by 875,000 barrels last week, and if confirmed by official EIA data, would be the eight decline in the past nine weeks. Meanwhile, president Joe Biden said he would consider personally sanctioning Vladimir Putin if he orders an invasion of Ukraine. Oil prices have gained more than 10% since the start of the year to reach 7-year highs last week, as strong demand and supply constraints significantly tightened the market. However, crude markets faced increased volatility this week on swings in risk sentiment, with impending policy tightening measures from the Federal Reserve remaining on top of investors’ minds.

WTI crude futures held above $85 per barrel on Wednesday after gaining almost 3% in the previous session, amid rising tensions over Ukraine and as industry estimates showed a draw in US crude inventories. First support on a decline will be $80.32 USD and first resistance to be tested is $85.37.

 

Gold prices held above $1,840 an ounce on Wednesday after hitting a 2-month high of $1,854 in the previous session, as investors looked to hedge inflationary and geopolitical risks. Persistent price pressures pushed the yellow metal higher as annual inflation rates soared to multi-decade highs across major economies, headlined by the US consumer price index which accelerated to its fastest pace in almost 40 years at 7% in December. Bullion prices also gained on increased safe-haven demand as tensions over Ukraine remain high, with US president Joe Biden threatening to sanction Vladimir Putin if he orders an invasion of Ukraine. Moreover, gold benefitted amid a sustained selloff in global equities as traders braced for impending policy tightening measures from the Federal Reserve.

Gold prices held above $1,840 an ounce on Wednesday after hitting a 2-month high of $1,854 in the previous session, as investors looked to hedge inflationary and geopolitical risks. The first resistance will be $1856 on a further rise and first support will be $1832 on a decline.

 

Political Risks are pushing prices higher as the Gas market is really tight in Europe and totally depend on Russian Gas. The first resistance to be tested is $4.00 and first support on a decline is $3.90 Level.

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