#forexbreakfast focus commodity (eng)
The Bloomberg commodity index stopped its rise. After four consecutive weeks, the index fell by 0.7%, despite the continued weakness of the dollar. The best sector of the week was that of precious metals, up 3.9%. Net change after three consecutive weeks of decline. Gold is back above 1800. Platinum rose by 11.2% while silver by 7.1%. Remember that their performance also depends on the automotive sector. The good week also for the industrial sector that rose + 1.4%. Copper closed the week up 3.1%, while aluminum 2.2%. The minor metals, on the other hand, suffered profit-taking by investors. The historical record for iron in Singapore, up by over 14% reaching $ 140. Thanks mainly to strong Chinese demand.
On the other hand, the energy sector was bad -2.9%. Due to mainly by the collapse of US natural gas -9.5%. The Brent, on the other hand, reached its highest levels for over nine months, reaching almost $ 50 / b. That despite OPEC + ‘s decision to raise production by 500,000 b / D from January. And then the commitment to assess month by month how to proceed.
Finally, we close with the agricultural sector down by 2.9%. Profits have been taken after the recent Brazilian rainy weather. All the principal commodities in that sector were affected by sales, leading coffee -5.4%, wheat -5%, corn -3%, and soy -2.4%
Last week, the climate of confidence brought Brent to almost 50 d / B. this is the main level to monitor, as exceeding it could project prices towards 56. On the downside, the support to monitor is located at 46.91. However, the stochastic indicator marks an overbought situation, both on the daily and weekly.
Last week gold touched its low for the period at 1762 and then climbed back above 1800. However, it was unable to exceed 1848. The stochastic oscillator marks a situation of neutrality, while the weekly shows signs of being in the oversold area.
Copper is in a constant overbought situation, but despite this, its run does not seem to stop. There seem to be no obstacles to reaching the 8000 thresholds. The support to be monitored is in the 7469 area, then in 7190.