Brent crude oil, silver and copper drop on hawkish Fed
Outlook on Brent crude oil, silver and copper as the Fed raised the terminal rate forecast to allow room for two additional rate hikes.
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Brent crude oil’s rally falters
Brent crude oil’s bounce earlier in the week faltered as the US Federal Reserve (Fed) left rates unchanged as expected but raised the terminal rate forecast to allow room for two additional rate hikes, leading to future oil demand concerns. Further sideways trading between Wednesday’s high at $75.43 and the May and current June lows at $71.58 to $71.40 is thus on the cards. Below it lies the March low at $70.09. Resistance above Wednesday’s high at $75.43 can be spotted along the April-to-June tentative downtrend line at $76.46.
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Silver drops on hawkish Fed
The silver price, having earlier in the week been rejected by the 55-day simple moving average (SMA) and last week’s high at $24.43 to $24.52, has fallen through its May-to-June support line at $23.40 on a hawkish Fed. The early June low at $23.25 is about to be hit, a fall through which would put the late May low at $22.93 on the cards. Below it sits the May trough at $22.68. Immediate resistance lies at Tuesday’s $23.60 low.
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Copper drops on risk-off sentiment
Copper, which on Wednesday nearly reached the 55-day simple moving average (SMA) at $8,541 per ton, has slid back to the 200-day simple moving average at $8,389 on general risk-off sentiment to do with the Fed allowing for a couple more rate hikes. Below the 200-day simple moving average (SMA) lies last Thursday’s low at $8,247 and above the 55-day simple moving average (SMA) at $8,541 the 9 May high at $8,645.
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