#forexbreakfast focus commodity
The Bloomberg Commodity index closed down 3.1% in a climate of increasing aversion to risk.
The most significant data for the markets was the generalized increase in infections throughout Europe which caused an inversion of expectations. The most affected index was that of industrial metals.
Furthermore, the strength of the dollar last week contributed to the decline in prices.
The worst-performing sector of the week was Precious Metals, down 7.4%. Mainly due to the rise in US real rates. The worst was silver which fell by 14.9%. Palladium and platinum also fell sharply.
Industrial metals also fell -4.5%. Mainly due to concerns about the fallout from increased infections on production and the weakening of Chinese demand. Copper prices in China are falling rapidly, confirming demand concerns.
The agricultural sector also falls -3% led by the decline of wheat and soy. Mainly due to better weather conditions in the US and lower Chinese demand for soybeans. On the other hand, coffee, cotton, and sugar are up.
The only sector that went against the trend was the energy sector. Even if thanks above all to the rise in natural gas + 6.5% due to rising expectations and a more rigid climate than was expected on the east coast.
Steady week for oil prices which closed around $ 42 / b.
The daily indicators do not give any useful indications while the weekly ones signal a weakening of the bullish movement.
On the downside, the area to be monitored is located towards 39.3, while on the upside, 43.8.
After several weeks, gold broke the support in 1900 and moved to 1865.
The indicators point to an oversold situation, which could lead to a rebound in the next few sessions. However, support at 1806 is monitored.
There are signs of weakness for copper, which did not reach the $ 7000 area. The weekly indicators point to an overbought situation, which would leave room for further drops in prices.
At $ 6602, the support at $ 6260 remains to be monitored.