Gold edges higher, oil slips on gloomy economic outlook

Here is the global trend and our view on precious metals, oil, and base metals.

Oct 25, 2019 08:10 IST India Infoline News Service

Bullions
Gold rose to a fresh two-week high on Friday owing to weak US economic data which drove expectations for another interest rate cut by the Federal Reserve later this month. Spot gold touched its highest since Oct 10 at $1,504.35/ounce and was slightly down at $1,501.67/ounce. For the week, the yellow metal has gained 0.8% so far. US gold futures were flat at $1,504.40/ounce on Friday.
 
MCX gold price has shown positive momentum in the last session and closed at 38,352 levels. Gold has given a breakout of its falling trend line on the hourly chart at 38,200 levels. Gold is trading above its super-trend indicator on the hourly timeframe, which indicates more upside in the prices. Momentum indicator RSI has moved above 60 levels on the hourly chart. On the other hand, MACD has shown positive crossover on the hourly chart, which also supports our bullish view on the commodity. Based on the above technical parameters, gold is looking bullish with a potential to reach 38,500.
 
Energy
Oil prices retreated on Friday after three straight days of gains, hurt by renewed concerns about fuel demand in light of gloomy economic growth forecasts. Brent crude was down 30 cents, or 0.5%, at $61.37/bbl. Brent crude rose nearly 1% on Thursday and is heading for a weekly gain of more than 3%. West Texas Intermediate (WTI) crude was down 26 cents, or 0.5%, at $55.97/bbl. The US benchmark rose 0.5% in the previous session and is on track for a weekly gain of 4.1%.
 
MCX crude oil price has moved higher from lower levels during the last day and closed at 4,010 levels. The price has given a breakout of its ascending triangle pattern trendline at 3,890 levels. Crude oil has taken support its rising channel pattern at 3,950 levels on the hourly chart. In addition, the price is trading above its Parabolic SAR on the hourly chart, which suggests that the short-term trend remains up. The Momentum indicator RSI has moved above 50 levels on the daily chart, which indicates possibilities of more upside in the prices. Momentum indicator MACD has shown positive crossover on the hour chart, which also indicates the positive bias in the prices. Based on above technical parameters, MCX Crude Oil is looking bullish with a potential to reach 4,060.
 
Base Metals
On Friday, base metals were trading with a mixed bias. On London Metal Exchange (LME), Aluminium was up 0.20% at $1,721.50, whereas Copper was down 0.26% at $5867.75. Zinc was down 0.71% at $2,478.25, while Lead was flat at $2223.50.
 
Metal prices opened on a mixed note on Thursday’s trading session. Aluminium price has taken support of its falling trendline at 129 levels on the hourly chart, while Lead price has taken support of its rising trendline at 155 levels on the hourly timeframe. Momentum indicator RSI has shown positive crossover on the hourly chart, which indicates bullishness in the prices. MCX Nickel price has given a breakout of its horizontal trend line at 1200 levels on the hourly chart. Nickel prices is trading above the 20-day moving average, which indicates that the short-term trend remains up. Zinc has faced resistance of its rising trendline at 186.70 levels, on the hourly chart. Zinc is trading below its super-trend indicator, which suggests negative momentum in the price. Copper has faced resistance of its 200-dema at 441 levels during the last session. MCX Copper price is trading below its super trend indicator on the hourly chart, which indicates that the medium-term trend remains down. Based on the above technical parameters, MCX Copper is looking bearish with a potential to reach 436.
 

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