Commodity markets are expected to remain volatile this week as investors track key economic data from the US, China and Europe, along with energy inventory reports and central bank commentary.
Gold and silver are likely to remain sensitive to the release of the US Federal Open Market Committee (FOMC) meeting minutes, inflation data from the UK and Europe, and speeches by Federal Reserve officials. Any hawkish signals from the Fed could strengthen the dollar and pressure precious metals, while weak economic sentiment may increase safe-haven demand.
China’s industrial production and retail sales data will also play a crucial role in shaping overall commodity sentiment.
Crude oil prices are expected to remain highly reactive to weekly API and EIA inventory data as well as key Chinese economic indicators. Stronger economic data from China could improve demand expectations and support oil prices. Continued declines in US crude inventories may keep bullish momentum intact, though concerns over slowing global growth could cap sharp gains.
Natural gas prices are likely to react to the weekly US natural gas storage report. Lower-than-expected storage additions could support prices further, while higher inventory levels may trigger renewed selling pressure.
Overall, commodity markets are expected to witness heightened volatility amid major economic releases and central bank signals. Precious metals may continue to be influenced by dollar movement and Federal Reserve expectations, while energy commodities are likely to track inventory trends and demand outlook from major economies such as China and the US.
Gold started the week at $4,686.15, below the previous close of $4,713.56, indicating a mild gap-down opening of around 0.58 percent. The metal remained under pressure throughout the week amid profit booking at higher levels and eventually settled at $4,539.39, down nearly 3.70 percent for the week.
Immediate support: $4,420
Stronger support: $4,099
Immediate resistance: $4,774
Major resistance: $4,995
Gold continues to remain in a corrective phase after failing to sustain above key resistance levels. As long as prices remain below $4,774, selling pressure may continue towards the $4,420 support zone. However, a sustained breakout above resistance could revive buying momentum.
Silver opened the week at $79.43, lower than the previous close of $80.30, reflecting a gap-down opening of around 1.10 percent. The metal witnessed sustained selling pressure during the week and closed at $75.89, recording a weekly decline of nearly 5.48 percent.
Immediate support: $72.20
Next support: $65.50
Immediate resistance: $83
Major resistance: $90
Silver remains under corrective pressure after repeated rejection near resistance zones. If prices continue to trade below $83, weakness may extend towards the $72.20 support level. A decisive recovery above resistance could improve sentiment and support a rebound.
Brent crude oil opened the week at $104, higher than the previous close of $100.24, indicating a strong gap-up opening of around 3.75 percent. Strong buying momentum dominated the week, pushing Brent to settle at $109.48, up nearly 9.22 percent.
Immediate support: $99.50
Next support: $86
Immediate resistance: $115
Broader resistance: $125
Brent crude continues to trade with strong bullish momentum after sustaining above key support levels. As long as prices remain above $99.50, the upward trend may continue towards the $115 resistance zone. However, failure to sustain at higher levels could trigger profit booking and increase volatility.
Natural gas opened the week at $2.96, slightly above the previous close of $2.91, indicating a modest gap-up opening of around 1.65 percent. Fresh buying interest helped prices recover from lower levels, with the commodity closing at $3.10, up nearly 6.60 percent for the week.
Immediate support: $2.91
Next support: $2.67
Immediate resistance: $3.24
Major resistance: $3.50
Natural gas has shown signs of short-term recovery after stabilising near support levels. If prices sustain above $2.91, momentum may extend towards the $3.24 resistance region. However, failure to hold above support could once again attract selling pressure and result in range-bound movement.
Note: Research support for this article was provided by Research Desk, MyEquityLab.com, a SEBI-registered research analyst (Registration No. INH000023843).
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Readers are advised to consult a qualified financial adviser and conduct their own due diligence before making any investment decisions.