#forexbreakfast focus commodity (eng)
Good week for the Bloomberg commodity index, up 2.1%, thus rising to its highest level since mid-2018. The weekly backdrop was one of dollar weakness and good global macro data. Thus operators’ optimism increases and with them the demand for commodities. The best sector of the week was agriculture; + 7.1%. Soy + 6.6%, corn + 10.2% at the highest levels since 2013. Contributing to this movement is strong global demand along with temporary supply-side problems. Wheat + 8.7%, Arabica coffee + 5.6%. Good week also for the heavy metals sector + 2.1%. Copper reached its highest level since 2011 on the back of concerns about demand and rumors of strikes in Chile. Iron continues to rise in Singapore, closing up 5.1% due to strong Chinese demand. the future of steel rebar in China hits a historic record. The week was not very moving for the precious sector, which closed down 0.1%. After almost touching the 1800 area, gold has been tracked down. Increases over 2% for platinum and palladium in the wake of good expectations in the auto sector. A negative week for the energy sector -0.7%. Brent closed down 1.3%. After exceeding the $ 68 / b area, it was affected by fears about demand from India, whose pandemic situation seems out of control.
After having exceeded 68, Brent closed the week with a slight decline. So far, Brent has been holding above the resistance at 65. It is important that prices rebound, as a drop below this level could result in a break-down. If prices close below 65 this Friday, it could return to previous levels, 60 to 58.98.
Last week, gold touched the 1800 level, and then closed below that level. The indications are those of last week. The goal seems to be 1837. The first support is placed in 1753. The weekly stochastic is in neutral territory, while the daily stochastic remains overbought.
At its highs since 2011, copper closed above the resistance at 9428. Today copper moved above 9612. Now a test of the 9900-10000 area is very likely. A sign of weakness could only come from a close below 9428.
Natural gas TTF
At the highest for three months. Mixed indications come from the indicators. On the upside, the first resistance stands at 22.09 and subsequently at 22.73. On the downside, the first resistance is at 20.09, the next at 18.89.