#forexbreakfast focus commodity (eng)
The first week of 2021 began with the so-called “reflation trades”. That means the return of investments on the main global assets in the wake of the prospects for the end of the pandemic in 2021. The two best sectors of the week were the energy sector + 6.7% and the industrial sector + 3.7%. The precious metals sector fell -4% in the context of hikes in US real rates. One of the main events last week was the OPEC + meeting. An agreement was reached on maintaining production at current levels. The Russian proposal to increase production by 500,000 B / d has been rejected, even though it may slightly increase its production quota. On the other hand, Saudi Arabia unilaterally decided to cut daily production by one million barrels (production will touch 8.125 million B / d). Brent has reached $ 56 at its highest in almost a year. In the industrial sector, good week for Nickel + 6.2%, thanks to good Chinese data on the auto sector. Copper also rose + 4.7% that exceeded the 8000 mark. Today, on the other hand, saw slight profit-taking on metals. Mainly due to the new Chinese lockdown. Gold fell by 3.2% and silver by 6.2%. They were affected by the rise in US real rates and the strengthening of the dollar. Good performance for soy, up 4.9%.
Following the results of the OPEC + meeting, Brent rose above 56. On the upside, we need to monitor last week’s high at 56.36. Subsequently, the first resistance is placed at 58.26. Any overcoming of this last resistance could project the Brent towards 60. On the downside, the first dynamic support is located at 51.51. While just above there is static support at 52.72.
Gold has returned to neutral ground. It currently trades between the trendline at 1800 and the one that moves to 1700. On the upside, there is the resistance at 1960, while on the downside remains at 1807.
The silver in the wake of gold last week lost more than 6%. Quotes fell below 25. Silver mustn’t fall below the threshold of 23.59 otherwise the target of 30 couldn’t be reached.
After a phase of consolidation, copper has reached an altitude of over 8000, aimed at area 8173. The stochastic indicator is in the overbought area. The short-term trend remains bullish. The support to monitor is placed at 7906.