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  5. Commodity trade setup Dec 5: Silver climbs above 21 EMA, Crude oil extends fall ahead of OPEC meeting

Market News

Commodity trade setup Dec 5: Silver climbs above 21 EMA, Crude oil extends fall ahead of OPEC meeting

Upstox
By Upstox News Desk

3 min read | Updated on December 05, 2024, 18:21 IST

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SUMMARY

Gold and silver prices are slightly lower due to a strong U.S. dollar and a lack of safe-haven demand. Investors are awaiting key U.S. economic data. Crude oil prices are up ahead of the OPEC+ meeting, with expectations of extending supply cuts. Gold is range-bound with resistance at ₹77,700, while silver tests ₹94,000. Crude oil remains weak, trading below key moving averages with resistance near ₹6,000.

Commodities trade setup 5 Dec: Silver climbs above 21 EMA, Crude oil extends fall ahead of OPEC meeting

Commodities trade setup 5 Dec: Silver climbs above 21 EMA, Crude oil extends fall ahead of OPEC meeting

Market recap (as of 6:15 pm)

  • Gold 5 Dec Futures: ₹77,008/ 10 gram (▼ 0.11%)
  • Silver 5 March Futures: ₹93,128/ 1 kg (▼ 0.18%)
  • Crude Oil 18 Dec Futures:** ₹5,825/ 100 BBL (▼ 0.3%)
Gold: The yellow metal is trading slightly lower today, with spot gold down 0.16% at $2,671 an ounce. Gold prices are lower amid a strong U.S. dollar. Meanwhile, the political turmoil in France and South Korea failed to boost safe-haven demand.
Silver: Silver prices are also trading lower, down 0.03% at $31.91 per ounce in the spot market. Precious metals are in the range as investors/traders look forward to key US economy data, including initial jobless claims numbers to be announced later in the day.
Crude oil: Crude prices are trading higher in the US market, with Brent Futures trading around $72.57, up 0.51% while WTI Crude traded 0.47% higher around $68.86. Oil prices are slightly firm today ahead of the Organization of the Petroleum Exporting Countries (OPEC+) meeting later in the day, with investors waiting to see what the producer group would do next on supply cuts. As per reports, OPEC+ likely to extend their latest round of oil output cuts by at least three months.

Technical structure

Gold: The technical structure of the yellow metal remains range-bound with gold trading within the range of 25 November’s candle, forming an inside candle on the daily chart. The gold prices are consolidating around its 21 and 50 day exponential moving averages (EMAs), with immediate resistance around ₹77,700 and support around ₹75,800. Traders can closely monitor these levels as a break above or below with strong candle will provide further directional clues.
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Silver: Silver captured its 21-day EMA on 4 December and advanced over 1%. It is currently trading near its immediate resistance of ₹94,000 and 50 EMA. If it captures ₹94,000 and 50 EMA on closing basis, then silver can extend the gains upto the next resistance zone of ₹96,200. Conversely, the immediate support is visible around 92,450, which also coincides with its 21 day EMA.
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Crude oil: Crude prices extended yesterday’s fall and is currently trading below its all the key short-term exponential moving averages (21 and 50), indicating weakness. As highlighted in our earlier blogs, over the last two months the broader structure of the crude oil remains range-bound between ₹6,100 and ₹5,600. Unless crude breaks this range on closing basis, the trend may remain sideways.
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The open interest data for the 16 December expiry of crude oil saw significant additions of call options at 6,000 and 5,900 strikes, suggesting that crude prices may face resistance around these levels. On the flip side, the put base was seen at 5,800 and 5,700 with relatively low volume.

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Disclaimer:

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for the client's consumption, and such material should not be redistributed. We do not recommend any particular stock, securities, or strategies for trading. The securities quoted are exemplary and are not recommendatory. The stock names mentioned in this article are purely to show how to do analysis. Take your own decision before investing.

SIP
Consistency beats timing.
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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.