#forexbreakfast focus commodity (eng)
The rise of the Bloomberg index continues, which closed with + 0.9%, returning to the highest levels since February. Thus the climate of optimism continues thanks to the development of vaccines together with the depreciation of the dollar. Positive closing for all sectors; except for the precious sector that has closed at -5.5%, due to the risk-on climate of the past week. Gold went below the $ 1,800 threshold. Silver fell by more than 7%, while palladium closed with a positive 4.2% thanks to the favorable climate in the auto sector. The best sector of the week was the energy sector + 5.8%. In the lead, Brent has returned to the highs of March, thanks to positive expectations on demand. OPEC and OPEC + meetings are fixed for the beginning of the week. The main theme regards the three-month postponement of the increase in production scheduled for January The industrial metals sector rose + 1.9%. Copper rose + 3.3% due to Chinese inventories continuously falling to their lowest levels since 2014. Iron rose + 1.6% for the fourth consecutive week due to strong Chinese demand. The agricultural sector was also positive + 0.9%, driven by the rise in coffee + 5%, due to the unfavorable climate in Brazil which is cracking the production prospects for 2021, with possible production drops of up to 33%.
The last week the Brent has broken the resistance at 46.53, coming close to the next resistance at 50. Due to the strong overbought, profit-taking. It will be fundamental this week to see if the support placed at 46.53 will hold up. If that support will be broken, we could see a few weeks of weakness.
The Gold has broken the support placed at 1806, opening up a possibility for a descent towards the 1700 area. The medium-term uptrend line passes at 1706. The indicators are in the overbought area, which could lead to some rebounds.
Strongly overbought copper does not stop its run, reaching the highs of 2013. The resistance placed at 7331 has given way, continuing the run in prices. Short-term resistance could be placed at 7500. On the downside, 7331 became the new support as well as 7189, both to monitor.