Commodity markets are expected to remain highly sensitive this week as investors closely monitor key US inflation data, crude oil inventory figures and major central bank commentary. Volatility is likely to remain elevated across gold, silver, crude oil and natural gas amid mixed economic signals from the US, China and Europe.
For precious metals, market focus will primarily remain on the US Core PCE inflation data, GDP figures and multiple speeches from Federal Reserve officials scheduled during the week. Higher-than-expected inflation readings could strengthen the US dollar and put pressure on gold and silver prices, while softer inflation data may revive safe-haven buying interest. Weaker consumer confidence data and slowing economic indicators from Europe and China could continue to support defensive demand for bullion.
Crude oil prices are likely to remain highly volatile, reacting to the weekly API and EIA crude inventory reports, along with US GDP data, durable goods orders and demand-related economic releases from China. Continued declines in US crude inventories may support oil prices, while concerns over slowing global growth and softer trade activity from Asian economies could limit sharp upside momentum. Market participants will also closely monitor the Baker Hughes rig count data for further supply-side cues.
Natural gas may remain volatile as traders track the US natural gas storage report and changing weather forecasts. A larger-than-expected inventory build could pressure prices, whereas tighter supply data or lower storage additions may support recovery attempts in the near term.
Speeches by Federal Reserve officials
Weekly API and EIA crude inventory reports
China’s demand-related economic data
Baker Hughes rig count data
US natural gas storage report and weather forecasts
US Core PCE inflation data
US GDP figures and durable goods orders
Volatility is likely to remain elevated across gold, silver, crude oil and natural gas amid mixed economic signals from the US, China and Europe.
Market focus for gold and silver will remain on US inflation data and Federal Reserve commentary.
Softer US inflation readings may revive safe-haven buying
Weak consumer confidence could support defensive demand
Slowing economic indicators from Europe and China may boost bullion demand
Higher-than-expected inflation may strengthen the US dollar
Hawkish Fed commentary could pressure gold and silver prices
Gold began the week at $4,531.02, slightly below the previous close of $4,539.39, indicating a mild gap-down opening of around 0.18 percent. Prices remained under selling pressure through the week and settled near $4,508.93, posting a weekly decline of around 0.67 percent.
Immediate support: $4,420
Stronger support: $4,220
Immediate resistance: $4,774
Major resistance: $4,995
Prices continue to trade with a weaker bias
Sustaining below $4,774 may keep sentiment negative
A breakout above resistance could trigger fresh buying interest
Silver opened the week at $75.45, below the previous close of $75.89, reflecting a mild gap-down opening of around 0.58 percent. The metal traded in a range-bound manner before settling near $75.48, down around 0.55 percent for the week.
Immediate support: $72.20
Stronger support: $65.50
Immediate resistance: $81
Major resistance: $89.40
Silver remains in a broader consolidation range
Holding above $72.20 may support recovery toward $81
A break below support could increase downside pressure
Brent crude oil opened the week at $109.75, slightly above the previous close of $109.48, indicating a marginal gap-up opening of around 0.25 percent. Profit booking during the week dragged prices lower, with Brent settling near $104.24, down around 4.79 percent.
Immediate support: $99.50
Next support: $92.40
Immediate resistance: $112.70
Major resistance: $119.50
Crude oil may remain highly volatile
Falling US inventories could support prices
Concerns over slowing global growth may cap upside momentum
Holding above $99.50 may support recovery toward $112.70
Natural gas opened the week at $3.13, slightly above the previous close of $3.10, reflecting a mild gap-up opening of around 0.84 percent. Prices later came under selling pressure and settled near $3.04, posting a weekly decline of around 2.21 percent.
Immediate support: $2.91
Stronger support: $2.67
Immediate resistance: $3.17
Major resistance: $3.50
Natural gas continues to trade in a volatile range
Larger-than-expected inventory builds may pressure prices
Tighter supply data could support recovery attempts
Sustaining above $2.91 may help prices move toward $3.17
Note: Research for this article was provided by Research Desk, MyEquityLab.com, a SEBI-registered research analyst. Registration No: INH000023843