#forexbreakfast focus commodity (eng)
The Bloomberg commodity index closed the week slightly positive, + 0.2% in a climate of total uncertainty linked to the progress of the epidemic on the European continent.
The best of the week was the energy sector + 1.1% driven mainly by the rise in US natural gas + 3.1% in anticipation of an increase in demand due to the low temperatures expected in the Midwest. Brent closed almost in parity, reaching just under 43 $ / b. The increase in Libyan production coupled with economic fears caused by the epidemic has caused bearish pressures on prices which have however been offset by Chinese demand which remains strong, and by a decline in US inventories.
The industrial metals sector was slightly positive + 0.6%, mainly due to the strong demand expected from China.
The copper has dropped by -0.5% after a wage agreement has been reached in Chile in the Escondida mine, the largest in the world. This news has gone to allay fears related to a compression of the copper supply.
The agricultural sector was also not very positive + 0.6%, driven by the rise in US wheat + 5.3%. Production fears of Russia and Ukraine continue to support the rose. On the other hand, soy was down -1.6%, and coffee -3.9%.
On the other hand, the precious metals sector closed sharply down -1.5% due mainly to the rise in US real rates and the appreciation of the dollar.
Steady week for oil that did not overcome the resistance at 43.80. This level remains to be monitored, as a breach could push the price towards 46.53.
However, the daily oscillator is in overbought territory, making it possible to predict possible profit-taking.
On the downside, the first support to be monitored is placed at 40.18$, while subsequently the most important support is located at 37.85$.
Weak week for gold that remained close to the 1900$ level.
However, the short oscillators show a neutral situation.
The first level to monitor, on the upside is set at 1975$, while on the downside the supports to monitor are set at 1823-1806$.
Declining week for copper, after news on the wage agreement. It failed to overcome the resistance at 6773$.
The weekly oscillator remains in the overbought area, the same situation for the daily one. It would be reasonable to expect short-term profits.
On the upside to monitor there is the resistance placed at 6772$, then that one placed at 6837$. On the downside, the first support to be monitored is located at 6366$.