CRUDE OIL FUTURES: RALLY REMAINS WELL AND SOUND

25 February 2022, 09:21

CME Group’s flash data for crude oil futures markets noted open interest rose for the second session in a row on Thursday, this time by around 30K contracts. Volume followed suit and rose by the most since March 9 2020 by around 1.165M contracts.

WTI keeps targeting $100.50

Prices of the barrel of WTI briefly advanced past the key $100.00 mark on Thursday, although it ended the session with modest gains around $93.00. The uptick was in tandem with increasing open interest and volume, which is supportive of the continuation of the uptrend for the time being.

GOLD PRICE FORECAST: XAU/USD EYES $2,000 IN COMING SESSIONS

25 February 2022, 08:58

Gold has regained its bullish momentum early Friday and started to edge higher toward $1,920. Amid the Russia-Ukraine war, the yellow metal could reach the $2,00 level, FXStreet’s Dhwani Mehta reports.

Gold bulls are back in the game

“Gold is likely to remain underpinned going forward, as tensions remain elevated concerning the West, Russia and Ukraine.”

“Gold’s four-hour chart is pointing to further upside risks, as the price recaptures the 21-Simple Moving Average (SMA) at $1,910. The road to recovery will likely extend towards the $1,950 level should the latter hold. The next stop for bulls is seen at the multi-month tops of $1,975, above which a ride towards the $2,000 mark will be inevitable.”

“If the bears fight back control, then a drop back towards the critical 50-SMA support at $1,892 will be inevitable. It’s worth noting that gold price has managed to reclaim ground from the latter on a couple of occasions earlier on.”

BREAKING: GOLD HITS $1900 AS RUSSIA/UKRAINE/NATO TENSIONS SIMMER

17 February 2022, 19:46

Spot gold (XAU/USD) prices hit $1900 per troy ounce for the first time since June 2021 on Thursday, taking its on-the-day gains to more than 1.5% as geopolitical tensions between Russia, Ukraine and NATO simmer, stimulating demand for safe-haven assets. Gold now trades more than 2.0% higher on the week, taking its two-week run of gains to nearly 5.0%.

Fears of an imminent Russian military incursion into Ukraine have escalated in recent days, with reports of shelling in the war-torn Donbas region of Eastern Ukraine on Thursday sparking fears that Russia is looking to create a pretext for military action, as the country continues to amass troops near the Ukrainian border. 

A positive technical backdrop has coincided with the increased safe-haven demand for gold; XAU/USD broke above a key long-term pennant structure at the end of last week. This week it fell back to the $1850 area to test the old long-term pennant and, promisingly for the bulls, found strong support. The bulls will now likely target a move above $1900 and towards the mid-2021 highs in the $1915 area.

US SEC. OF STATE BLINKEN DELIVERS REMARKS AT UN SECURITY COUNCIL – LIVE STREAM

17 February 2022, 17:09

US Secretary of State Antony Blinken will be delivering his remarks on the Russia-Ukraine conflict at a UN Security Council Meeting, from UN Headquarters in New York City, on February 17, 2022.

Markets remain risk-averse on Thursday on reports pointing to a heightened risk of a Russian invasion. The benchmark 10-year US Treasury bond yield is down more than 3% on the day and the S&P 500 Index is losing 1.25%.

Meanwhile, the US Dollar Index, which tracks the dollar's performance against a basket of six major currencies, stays relatively quiet below 96.00.

Ukraine's Foreign Minister: Fire from a tank recorded in Eastern Ukraine.

Russia says US security proposals not constructive, ignore key Russia security concerns.

 

EAST UKRAINE: AS OF 1500 LOCAL TIME, 40 ARTILLERY INCIDENTS RECORDED, TWO UKRAINIAN SOLDIERS INJURED

17 February 2022, 17:00

According to the Kyiv Independent, as of 1500 local time, over 40 artillery incidents have been recorded in the Donbas region of Eastern Ukraine and two Ukrainian soldiers have now been injured.

Market Reaction

The latest run of Russia/Ukraine/NATO headlines, which suggest more violence in Eastern Ukraine and worsening tensions, are weighing on sentiment, with the S&P 500 now trading more than 1.0% lower on the day.