#forexbreakfast focus commodity
The Bloomberg commodity index closed the week up, with + 4.9%, thus recovering all the losses accumulated during September. Based on this strong rise are the optimistic climate arising from the rumors of a new US fiscal plan and fears about the drop in the supply of some raw materials. All commodities closed the week up, led by the energy sector which recorded an important week.
As highlighted earlier, the best sector of the week was the energy sector which registered a decided + 9.9%, the best week in four years now. The upside was the closure of the plants located in the Gulf of Mexico and above all the rise in oil due to the strikes in Norway which caused an 8% interruption of production.
The agricultural sector closed the week with + 4.3%, pulled by corn and soy due to supply concerns. The crops of Russia and Ukraine are in a drought and this could compromise the harvest. Similar situation for soybean production areas in Latin America.
Same performance as the agricultural sector for the industrial metals sector + 4.3%. In particular, they shone nickel and aluminum. The sector has benefited from the situation in China which does not seem to be deteriorating due to the epidemic at the moment.
Precious metals also rose + 1.8%, mainly thanks to the weakness of the dollar and the decline in US real rates.
An upward week for oil, which came close to the 43.80 area, breaking the bearish trendline that began in September.
Indicators signal an overbought phase.
On the upside, the level to be monitored is that of the resistance at 43.8. Exceeding it could project prices towards air 46.53.
Gold that went to test the $ 1929 area also rose.
Ignoring the rebound of the last week, the trend remains neutral-negative.
To monitor the area in 1929, exceeding it could project prices up, while on the contrary, the hypothesis of the area test 1822-1806 remains valid.
Copper also rose, returning to its highs in September.
The weekly oscillators signal an overbought situation, while the daily oscillators signal a resumption of buying.
On the upside to be monitored, there is the resistance placed at 6772, then at 6837. Their overcoming could project prices towards 7000.