Silver and Oil Under the Radar

Gold has almost reached the all time high level in the weekly close. However, the same performance has not been observed in Silver and other precious metals yet. As the positive atmosphere is believed to affect Silver eventually, investors started to speculate about possible price actions in Silver.

Besides the move by Gold and the strong outlook of Silver, there are some expectations from Oil as the Oil Producing Countries voluntarily accepted to limit the production of Oil (barrels per day) starting from January 1.

Though the commodities index does not make a noteworthy price action, Silver and Oil may gain some strength soon.

The Side of Silver

There are 2 primary reasons for the expectations from Silver.

1- Gold has performed very well and investors think that Silver is also ready to show a similar bullish sign.

2- The weekly chart of Silver is bullish

3- Inflation is no longer the dominant narrative, rather, it is time for interest rate cuts.

The Chart is Bullish

Silver has shown 2 fake moves by testing lower levels than the trendline.

They were a bit scary times for Silver collectors as the trend is everything for traders.

The weekly chart from TradingView shows the fakeout attempts and the current state clearly. First of all, the weekly close is above the upper trendline that worked as a solid resistance level which was tested 4 times earlier.

With $25.4 per Onz weekly close, Silver signed an upcoming move pretty soon.

I expect to see $30 - $37 in the Silver chart next year. As the interest rate cuts and slow down in Quantitative Tightening are good for all markets, Silver will get its portion in my opinion.

Oil may Join the Party

Last month I thought $80 might be a strong support level but it did not happen.

https://inleo.io/@idiosyncratic1/is-crude-oil-a-sleeping-giant

Once again, I do not give up and talk about the performance of Oil as it tested $100 and retraced. With the current price levels, Oil looks pretty cheap to me.

Besides the technical side, OPEC + countries declared production cut decisions:

OPEC Official Website

Oil producing countries are not happy with the performance of Oil in the global markets and they declared that as of January 1, there will be production cuts as they planned.

So, average production around the world, which is around 80 Million, will decrease by 4% - 5% as a first step. As long as countries have enough Oil reserves, the price may not go high. Also, keep in mind that this will continue during the whole first quarter of 2024 😅

Yet, I expect to see higher levels because OPEC + countries are strict about their requests. They want to sell the precious commodity for a reasonable price as the purchasing power of the US Dollar has also melted.

For many investors, the year 2023 is almost over for their financial investment decisions. This year has run out of narratives, already. Eyes will be on 2024 👀

It might be too early to expect a rise in the commodity groups. However, as the leading commodities, Silver and Oil may follow what Gold did before the year ends. For 2024, it might be better to be prepared for potential price actions.

What do you expect to see in Gold and Oil in 2024?

Share your thoughts below 👇

Hive On ✌🏼

Posted Using InLeo Alpha