#forexbreakfast focus commodity (eng)
The Bloomberg commodity index closed up 1.3% last week. The worst sector of the week is that of industrial metals -2.6%. Mainly due to the risk-off climate and partly due to the liquidity drain by the PBoC. Although, the Chinese central bank returned to inject liquidity on Friday. Fears of virus mutations and the Chinese New Year holiday weigh on this sector. Iron in this context fell by 6.4%. Tepid week for the precious sector + 0.8%. Gold fell by 0.5%, while silver rose by more than 5% thanks to strong purchases by US retail. Silver today reached 30% / or maximum since 2013. Good week for the energy sector + 1.1%, thanks to the rise in US natural gas + 4.4%. Oil ended the week just below par. Excellent week for the agricultural sector -3.9%, thanks to strong Chinese purchases. In the lead corn + 9.3%, followed by wheat + 4.5% and soy + 4.4%.
Yet another side week for Brent, which remains close to the latest highs. The indications remain broadly the same as in the previous week. On the upside, the first resistance is at 57.42. On the downside, the first support is at 53.30 and subsequently at 52.72. The latest is at 50.56. The oscillators are discordant,the daily one is overbought, while the weekly one is neutral.
Low volatility for gold whose indications remain the same as in the previous week. The prices remain below the bearish trendline that started in October. On the downside, the first support to monitor is 1806. The oscillators remain neutral.
A weak week for copper that has broken down the bullish channel started at the end of September. Likely, the prices could further decline by retracing the area 7587. The indicators remain divergent, with the weekly one overbought.
Thanks to the trend launched by US retailers, silver has surpassed 28, reaching 30. If that resistance will be overcome, there would be space for a further climb towards the next resistance located at 34. The strong rally over the past three sessions could also lead to quick profit-taking. In this case, the area 27.77 and 28.15 could act as a support for any corrections.