Vijay Valecha, Chief Investment Officer, Century Financial on Crude Oil, Gold updates.

Record U.S. oil production sparks battle for market share with Saudi Arabia and OPEC+: U.S. oil production is back at record levels, sparking a battle for market share with Saudi Arabia as OPEC+ tries to keep global crude supplies in check.

Oil Prices Are Up. Coal Won’t Be So Lucky: Global coal production is growing healthily, making a return to 2022’s prices unlikely.

Oil climbs a second day after US crude inventories draw down: Oil rose for a second day on Wednesday after an industry report showed a bigger-than-expected drawdown of crude inventories in the United States, the world’s biggest oil consumer, that bolstered demand sentiment.

Renewed attacks on shipping in the Red Sea by Yemen’s Houthi militia in support of the Palestinians on Tuesday and potential disruptions to oil tanker flows in the area also supported prices.

Gold rose today continuing yesterday’s trend, as market participants eagerly awaited the CPI report for December, which is set to be released tomorrow. Currently, core inflation stands at 4% with economists’ forecasts predicting that inflation will show a year-over-year decline of 0.2% taking core inflation to 3.8%. Economic forecasts are also predicting an increase in headline inflation with Thursday’s report expected to reveal that headline inflation continued to rise last month by 0.2%. Looking into the day, it is relatively a light day for the US economic calendar, with the speech of FOMC member Williams and the Atlanta Fed GDP (Q4) expected to garner investor attention.

From a technical perspective, despite trading within a short-term downward trending channel, gold found a significant support zone near 2026.69. Presently, it hovers around an equilibrium price level according to the Fibonacci levels from 1972.60 to 2088.48. Maintaining above this point should favor bullish momentum, eyeing an intraday target around 2043, it must be noted that there is a notable strong bearish order block above this target, and surpassing this could drive gold toward 2050. Conversely, a robust support zone spans from 2024.7 to 2026.69, pivotal in sustaining gold’s upward trend. However, a breach below this range might steer gold downward toward the 2016.69 mark.
The expected trading range for today is between 2026.69 support and 2043 resistance.
The expected trend for today: Bullish

Gold prices in the UAE for the day (morning) are as follows:
24 Carat AED 246.00
22 Carat AED 227.75
21 Carat AED 220.50
18 Carat AED 189.00


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