EUROPEAN COMMODITIES UPDATE: Crude claws back losses whilst gold hovers above the 200 and 50 DMAs

Analysis details (10:51)

WTI and Brent March contracts are trimming their post-Fed losses in tandem with gains across stocks, with the geopolitical situation also tense in the run-up to next week’s OPEC meeting. The news flow for the complex has been light as eyes remain on the Fed fallout alongside developments between Russia and Ukraine. On that note, Russia's Kremlin says Russia's main security demand has not been taken into account and added that remarks by the US and NATO that main demands are unacceptable do not give much cause for optimism. The developments around Russia’s proposal and the US/NATO response will likely dictate the trajectory of events as TASS recently reported that Russia is to formulate its stance after the US responds to their security proposals. Aside from that, price action will likely be a function of risk sentiment throughout the session. WTI trades above USD 87.00/bbl (vs low 86.40/bbl) while Brent trades on either side of USD 90/bbl (vs low 89/bbl). Elsewhere, spot gold meanders around yesterday’s lows after Fed chair Powell dealt the metal a blow, with the 200 DMA (1,805/oz) and 50 DMA (1,803/oz) back in view. LME copper meanwhile remains subdued within tight ranges, but prices found some support near USD 9,750/t.

27 Jan 2022 - 10:50- Fixed IncomeResearch Sheet- Source: Newsquawk