#forexbreakfast focus commodity (eng)
The Bloomberg commodity index closed up (+ 2.2%) for the fourth consecutive week, at its highest in nearly three years. The only sector in decline was that of precious metals. Gold and silver were negatively affected by the appreciation of the dollar against the euro and the rise in US rates. Platinum fell -2.6%. New record for palladium up by 3.4% which reached $ 3000 / o. The best sector of the week was industrial metals, up 3.1%. copper hit $ 10,000 / mt. From China, there is news of possible slowdowns in demand due to high prices. Nickel + 7.8% after further Chinese restrictions on steel production. Iron + 1.7% up for the sixth consecutive week, it reached new all-time highs. Good week for the agricultural sector + 3%. Corn + 6.4% for 8 years at most due to strong Chinese demand and supply problems in Brazil. Soy + 1.2% and wheat + 3.2%. Arabica coffee + 2.1%. Good week also for the energy sector + 2.5% in the wake of the rise in oil on good demand expectations for the rest of 2021. Fears related to the current situation in India caused a sharp drop in prices on Friday. Natural gas TTF + 16.3% due to a problem in Norwegian production and high demand from the European continent due to the colder than expected climate.
Brent prices broke through the resistance at 67.24, despite the strong sell-off on Friday. To confirm the current levels Brent prices must return to the 68/69 zone, otherwise, last week’s movement could prove to be a false breakout. The divergences with the indicators confirm this. It is also important that the uptrend line that started in November 2020 is not broken down, otherwise, we could see a drop in prices around area 60.
After almost touching 1800, gold immediately took profits, however not falling 1753. The indications of last week remain valid, with a target above 1800, towards area 1837. The closest support is at 1753.
The resistance at 9412 has been breached and copper prices have tested 10000. The closest support is now 9412. On the upside, the resistance at 10179.50 is to be monitored, an all-time high of 2011. The indicators are both in the overbought zone.
TTF Natural Gas
Sharp acceleration to the upside for the TTF phase, at its highest since January. The resistance to monitor now is at 24.90. If the TTF gas is exceeded, it could push up to 29. Down to monitor the supports at 22.73 and 20.78.