Precious metals and oil under heavy selling pressure

6:48 PM 3 February 2023

Majority of commodities are facing significant pressure from bears as latest data from the US economy lead to strengthening of the US dollar and higher treasury yields. Fresh NFP report brought a higher degree of uncertainty regarding the Fed's  next move while dashing expectations that major central banks will soon end their tightening cycle. 

Silver price broke below the lower limit of the consolidation around $23.00-23.20 and fell more than 4.0% below $22.40 per ounce mark, a level not seen since mid-January. If current sentiment prevails, the downward move may deepen towards key support at $22.00, which coincides with the 200 SMA (red line) and upward trendline. Source: xStation5

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GOLD pulled back over 2.0% on Friday and is testing crucial support at $1875, which coincides with the local upward trendline. Should break lower occur, downward correction may deepen towards next support at $1830, which is marked with 23.6% Fibonacci retracement of the bullish wave started at the  beginning of the pandemic. Source: xStation5

OIL.WTI retreated over 3.0% after buyers failed to break above local resistance at $77.80. Currently the price is testing the key support zone around $73.60, which is marked with lower limit of the 1:1 structure. Source: xStation5

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