#forexbreakfast focus commodity (eng)
Tepid week for the Bloomberg commodity index that has closed up 1%. In the context of risk aversion due to falling rates and new fears for the delta variant, it was not an entirely positive week for the index. The best performance of the week belongs to the agricultural sector + 5.6%. Super week for wheat + 12.6%. Excellent week also for coffee + 6.5%, corn + 5% and soy + 4.7%. Unfavorable weather conditions in the US, Europe, and Russia and USDA forecasts of decreasing global inventories and production has favored the rise in prices. Little moved week for the industrial metals sector + 0.2%. Iron + 4.7%, following slight concerns about production together with Chinese demand that remains strong. A slightly negative week for the precious sector, -0.2%. Gold remained above 1800 while palladium fell by 6.2%, very sensitive to fears of an economic slowdown. A negative week for the energy sector -1.8%. About brent; fears about increasing supply and demand according to the latest OPEC + rumors brought about the price down.
Brent is at its lowest for over a month. After breaking the support at 71.55 and then the one at 69.51, it is going to test the level on 68. The weekly stochastic is still overbought, while the daily stochastic is in neutral territory. To monitor there is 69.51 area where this week the short upward trendline that connects the lows of March with those of May will pass.
Last week gold touched 1830 and then dropped and returned to the 1800 area. The prices remain within the triangle formed by the upward trendline started in 2020 and the one that connects the highs in 2021. Only the break of one of the two trendlines will give direction to gold. On the upside, the resistances are in the area of 1835 and 1890. On the downside, the 1745 area remains to monitor.
After the rebound earlier last week, copper prices have tried to consolidate. Static support at 8893 remains the most important. On the upside, there is resistance at 9680 to monitor.
The stochastic indicators are in neutral territory.