Commodities Archives

September 23, 2024September 23, 2024

Gold’s Price Consolidates After Reaching All-Time High

In 2015, the lowest price of Gold was at $1047. The bulls have done tremendously well by making the gold price increase in value in the last 9 years. Even during the pandemic, the price of Gold was not really affected, as it was readily considered as a safe haven. The price of Gold reached a new high at $2082 in 2020 despite the disruption that year. Two years later, price fell to $1615. After this fall, the bulls continued the run.

Between August 2020 and December 2023, price of Gold was moving between $1615 and $2082. In latter days of the year 2023, there was a breakout of the resistance level to the upside. This year’s opening price for Gold was at $2023 per ounce. More than 80% of the monthly candlesticks this year closed bullish. The all-time was reached earlier this month at $2588. Since hitting its highs, price has been consolidating around the highs. The current price of Gold is at $2563.03, we should see price reach new highs above $2600 in the next few weeks.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get commodities in your portfolio? Schedule a meeting with us here

October 19, 2023October 19, 2023

Gold Bounces As Bulls Gain Momentum

In October 2022, the price of gold fell to $1617 per ounce, after price had reached $2071 in March 2022. This price dip is one of the worst falls Gold has had since its been traded. A major support level was formed at $1617. There was consolidation for about 8 weeks before a bounce in the price of $XAUUSD started in November 2022. The bounce made the price of gold reach a previous resistance level of $2071 in May 2023. At different times in the past, in August 2020, March 2022 and May 2023, the price of Gold has maintained this resistance level at $2071.

In the past three years, the price of Gold has been moving between $1617 and $2071. From the recent top in May 2023, price fell to a support level of $1810 in October 2023. The current price of Gold is at $1948. We might be seeing price rally to $1990 in the coming weeks, The RSI on the daily chart has shown that the price is oversold.

April 14, 2023April 14, 2023

WTI Oil Price Reaches 2023 High

The opening price of WTI in 2023 was at $80.50. The price movement since the beginning of the year had been between $72 and $82 per barrel. Before this week’s rally to $83 per barrel, the highest price of crude oil had been $82.56 which was between January 18 and 23. A breakout to the downside was imminent which we wrote in our previous article. On the 14th of March, the price of crude oil reached a new 2023 low as a result of the downward breakout as price reached $64.

There was a price rally mid-March which made price reach the upper region of the Bollinger Bands. On the first trading day of April, there was a gap up in the price of Oil. The closing price on March 31st was $75, but as a result of the gap up, price was able to cross the psychological level of $80 on the first trading day of April 2023. We might see price reach a new psychological level at $90 in the coming weeks.

July 19, 2022July 19, 2022

Gold Price Reaches A New 2022 Low

Gold opened in 2022 at $1830 per ounce and for the first part of the month, it was bullish. But then it changed direction and began to fall until it eventually closed on a bearish candlestick at $1796. As February 2022 began, the bulls got their groove back and were dominant for the next couple of weeks which caused February and March 2022 to both close with bullish candlesticks.

Gold price movements in 2021 was more of a range between $1907 and $1705 on the monthly time frame. The range was even more pronounced in the second half of 2021. The highest point Gold reached in 2021 was $1960. Looking at Gold this year, the highest point it has reached is $2067.

On the 23rd of February 2022, we forecasted that Gold may not be able to keep up the bullish rally (see article). We were correct on that call because since March 2022, Gold has been falling. On the bearish run, Gold’s price fell to $1699, which stands as the lowest point this year. In the publication referred to earlier, a support line was drawn at $1676 and our analysts believe that with the current bearish force on Gold, that support level could be broken to the downside.

June 27, 2022June 29, 2022

Oil Price Loses Over $5 In A Day

In March 2022, price of WTI rose to $130.37 per barrel, making it the highest price of crude oil in 14 years. Ever since then, the year’s resistance was maintained at that level. The all-time high of crude oil price was reached at $147.40 per barrel in June 2008. During the global lockdown in April 2020, there was an historical price fall. The price of crude oil went as low as negative price, as WTI was at -$40. The price closed on the 20th of April 2020 at -$37.51, as there was little or no demand for crude oil globally. The next day after this historical fall, price was back to double-digits.

The most part of Q2 2022, shows price has been over $100 most of the time. Some analysts have concluded that world might see a recession soon. Commodity prices globally might fall if the recession becomes a reality. As investors have concerns about the likelihood of a recession, and the Biden administration is prepared to step up its fight against lofty pump prices by calling a tax holiday on gasoline. The WTI fell to 104.40 from $109.74. As it stands, the oil price is headed to the first monthly loss since November 2021. If this fall persists, the oil price might fall to $62.63 per barrel which was the December 2021 support level. On the daily chart, between January and February 2021, RSI showed at three different occasions where price of crude oil has been overbought.

May 6, 2022May 9, 2022

UNCHARTED Podcast: Episode 4

CRYPTOCURRENCY: An overview of the Crypto market

CRYPTOCURRENCY: Analysis of Bitcoin & Ethereum

In this podcast episode, we did a general review of markets. First, we extensively discussed Cryptocurrencies. We looked into Bitcoin and Ethereum and the recent stagnation. We also did a forecast of the direction that these major Cryptos may move in the coming months. We touched on Solana and the impact Bitcoin has on all cryptocurrencies. Here’s a forecast on Bitcoin we made some months back.

CURRENCIES: The Impressive Run of the US Dollar and how Risk-Aversion is contributing to it

CURRENCIES: Depreciation of world currencies and their reliance on the USD

CURRENCIES: US Dollar as a Safe Haven, GBPUSD, & NZDUSD

CURRENCIES: Possible causes for USD rise and Inflation

CURRENCIES: US Economic Strength and quarter-over-quarter GDP growth

CURRENCIES: Recession Fears & USDJPY

We also took a dive into the world of Currencies, specifically the United States Dollar. The Dollar has been dominating the world of currencies. Despite inflation rates being sky high, the Dollar seems to be doing relatively well when compared with other major currencies. We also discussed the Central Banks and their reactions to the inflation their respective countries face.

COMMODITIES: An overview of Gold & Silver

COMMODITIES: USD vs Gold, which is the Safe Haven of Choice?

We closed this episode on Commodities. During times of crisis, it is expected that people will hedge their funds in Precious Metals but this isn’t what we are seeing. Investors are hedging their funds in USD and investors from emerging markets also see USD as a safe haven as opposed to Gold and Silver.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks in your portfolio? Schedule a meeting with us here.