#forexbreakfast focus commodity
The Bloomberg commodity index still down -1.25%, for the second consecutive week. The collapse of the energy sector due to fears of demand following the increase in infections in Europe and the United States, together with the increase in supply from some of the OPEC + countries, weighs heavily.
The energy sector closed with a decline of 9.5%, recording its worst performance of the week and its worst since last April. Production in Libya last week reached 300,000 b / d compared to 70,000 b / d at the beginning of September. Following Libya was also Russia which increased its production while Saudi Arabia’s exports rose by 500,000 barrels/day.
On the other hand, the precious metals sector returned to rise + 2.6% thanks above all to the weakness of the dollar and the decline in US real rates. The best of the week was silver + 4%.
The agricultural sector also rose + 1.9%, mainly driven by wheat + 5.3% and corn + 4% after the report published by the USDA which highlighted lower-than-expected stocks.
On the other hand, coffee collapsed -4.1% in the wake of sales involving the Brazilian real.
Precious metals closed at par + 0.1% thanks mainly to copper which started to rise again thanks to fears of strikes in Chile.
The week was down for Brent, which fell below the $ 40 / b threshold, reaching $ 38.8 / b.
The weekly oscillators signal the loss of strength of the uptrend. It is reasonable to expect a further drop in the price. The first levels to be observed are placed at 37.85 and subsequently at 36.4.
On the upside, however, resistance was created at 42.46. Although a bullish movement is not to be expected until the break of the resistance at 43.8 which could bring the price up to 46.53.
Short rebound for gold which, in the wake of the strong oversold, returned to above 1900, but without reaching 1929.
At the moment there are no clear signals, the short-term trend remains approximately neutral.
The most valid idea sees gold testing the support placed in 1806.
Volatile week for copper which went to test the levels of the bullish trendline started in March.
The weekly oscillator is still in the overbought area, so there is still room for a drop in prices.
Down to monitor the support at 6366, its break implies the break of the aforementioned uptrend line, which would open the way for a further descent placed at 6260.