Crude Oil prices could be set for a bear cycle as Donald Trump is set to become the next US President in January 2025. Trump has already committed in the runup to the presidential election that regulation and permitting will become less strict. At the same time, funds allocated to green energy will be diverted towards shale Oil and fossil fuel projects. That means structural additional supply is set to be released in 2025, on top of OPEC+’s foreseen supply normalization.
- US natural gas prices are side-lined
- Downside Momentum likely to Accelerate Gold Below $2600
- Trump tax cuts come at the right time for stocks. Further ahead, it gets murky.
- MCX Gold Support Key at Rs 76,850 and Resistance Key at Rs 77,300 [07 Nov 2024]
- Can gold ETFs reduce Current Account Deficit?
On the upside, the hefty technical level at $74.20, with the 100-day Simple Moving Average (SMA) and a few pivotal lines, is the next big hurdle ahead. The 200-day SMA at $76.80 is still quite far off, although it could get tested in case tensions in the Middle East arise.
The 55-day SMA at $70.86, has lost control of the situation and no longer supports prices while being chopped up intraday. Traders need to look much lower at $67.12, a level that supported the price in May and June 2023. In case that level breaks, the 2024 year-to-date low emerges at $64.75, followed by $64.38, the low from 2023.
