#forexbreakfast focus commodity (Eng)
After last week’s decline, the Bloomberg commodity index returned to close positive + 0.8%. The best sector of the week was energy + 1%. Thanks also to the rise in the price of Brent that has returned above $ 50. The current good demand, in particular from Asia and Brazil, benefited the prices. Good week also for industrial metals + 0.8%. The trend is not unanimous, with aluminum down while copper and nickel up + 5.4%. The sharp rise in nickel is mainly due to expectations for the vaccine and good prospects for the auto sector. In this regard, Chinese stocks at their lowest for a year and a half. New record for iron in Singapore, up by more than 12%. Good closing for the agricultural sector + 1.3%. US wheat in the lead + 6.8%, after rumors of a tax on exports to Russia as the leading global producer. Good week for cotton + 3.5%. The precious metals sector remained unchanged, gold stabilized, while strong sales affected secondary metals. Platinum -4.7%.
Sixth consecutive upward week for Brent. If it closes the week above 50, it could open the way to the test of the resistance at $ 56. On the downside, the first support to monitor is located at 48.05, while the next one at 46.82. The stochastic indicator signals an overbought situation, both on the daily and weekly.
The past week saw gold consolidate above 1800. Prices are currently closed within a range that goes from 1700 where the uptrend line passes and 1900 where the downtrend line passes. The indicators give divergent situations, not reporting any divergence of particular interest.
The high overbought situation does not stop the rise of the red metal that for now remains above the 8000 level. One can always expect profit-taking given the excessive level of overbought. On the downside, the first support is located in the 7583 zone, followed by 7300.