Crude oil, Gold, Silver price analysis roundup

Written by: Stanko Iliev
February 28, 2021
  • Crude oil continues to trade above $60 support
  • Sentiment for silver remains bullish while the price of gold remains under pressure
  • Looking ahead to next week, the focus of investors will shift to U.S. employment data

The global stock markets weakened last week, Wall Street’s three main indexes closed sharply lower, and the risk aversion will likely prevail the next trading week.

The crude oil price fell on Friday as the U.S. dollar rose, but it continues to trade above $60 support. The Organization of the Petroleum Exporting Countries (OPEC) and allies will have a meeting next week, and according to estimates, OPEC will allow the output to increase.

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“While there are grounds for optimism that 2021 will be the year of recovery, there are many uncertainties ahead. Much now depends on the outcome of this race between a mutating virus and vaccines to end the pandemic, and on the ability of policies to provide effective support until that happens,” said Mohammad Sanusi Barkindo, OPEC Secretary-General.

Crude oil price advanced this February, supported by optimism over demand recovery on the back of COVID-19 vaccination, but more supply could add pressure on the crude oil price. Crude oil prices also face pressure from slower refinery demand bud; despite this, hedge funds raised their net long U.S. crude futures and options positions.

Gold price weakened last week and continues to trade close to $1700 support as the U.S. Dollar has shown signs of a recovery. Silver price remains in a bull market but extended its correction from the recent highs above $30 registered in the first week of February.

The U.S. policymakers believe that the economic comeback will come this year, and the U.S. Treasury yields reached one-year highs amid hopes for an improving economy. Next week, the focus of investors will shift to U.S. employment data, as the country will publish the Nonfarm Payrolls report on Friday.

Crude oil continues to trade above $60 support

The crude oil price has advanced from $51 above $63 since the beginning of February, and the current price stands around $61.5.

Data source: tradingview.com

The important resistance levels are $65 and $70; $60 and $55 represent strong support levels. If the price jumps above $65, it would be a signal to trade oil, and we have the open way to $67 or even $70.

On the other side, if the price falls below $55 support, it would be a strong “sell” signal, and the price could fall again below $50.

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Gold price remains under pressure

Gold price weakened last week and continues to trade close to $1700 support as the U.S. Dollar has shown signs of a recovery.

Data source: tradingview.com

The current support level is $1700, and if the price falls below this level, the next target could be around $1650.

Silver remains in the buy zone as long the price is above $25 support

Silver price remains in a bull market but extended its correction from the recent highs above $30 registered in the first week of February.

Data source: tradingview.com

The sentiment for silver remains bullish, but if the price falls below $25, it would be a strong “sell” signal, and we have the open way to $23.

Summary

The global stock markets weakened last week, Wall Street’s three main indexes closed sharply lower, and the risk aversion will likely prevail the next trading week. Crude oil continues to trade above $60 support, sentiment for silver remains bullish while the price of gold remains under pressure.