#forexbreakfast focus commodity (eng)
Last week the upward phase of the Bloomberg Commodity index continued which closed at + 1.9%, the highest since November 2018. Decisive for the week were; expectations for the Biden plan, the vaccination campaign, the depreciation of the dollar, and the performance of some commodities. The best sector of the week was that of industrial metals + 4.31%. Demand remains strong, along with supply-related fears. Copper + 4.5% hit its highest level since 2012, in the wake of below-expected production. Excellent week for zinc + 6.2%, also good for aluminum, nickel, and lead. After 4 consecutive weeks of decline, an excellent week also for iron + 6.9%. Good week for the energy sector + 3.3% in the wake of the frost on the United States. The heavy situation in Texas, where there are widespread blackouts, has pushed up US natural gas and oil. Brent reached $ 63. Weak week for the agricultural sector -0.2%. Sales mainly involved corn, cocoa, and coffee. Uneven week for the precious metals sector + 0.7%. Gold rose 0.6% for the first time in three weeks. Super week for platinum + 11.1%, in the wake of higher demand expectations.
At 13-month highs, despite the strong overbought level, it continues to rise. The next target appears to be the resistance at $ 66. On the downside, the new reference support becomes area 60.
After falling below 1800 for a very short period, gold returned to close above. However, always below the 1850 area, where the bearish trendline that started in 2020 passes. However, prices remain above the upward trendline that started in 2019. A break of these levels could lead gold towards the 1700 area.
After exceeding area 8163, copper has gone beyond the target indicated in recent weeks, namely area 8300. The stochastic indicator marks overbought, both on a daily and weekly basis. If copper closed the week above 8400, it would open the way for 8700. Given the strong overbought, it is reasonable to expect short-term profit-taking.
Upward week for zinc which returned to test 2021 resistance, 2869. The Stochastic is neutral on the daily but is overbought on the weekly. On the downside, the supports are very far from the current values, at 2419 and 2658.