Our weekly journey through the precious metals and commodities CFD’s available with OANDA. Jeffrey analyses each using a combination of technical and fundamental analysis.
This week, U.S. interest rates are still rising, as is the big dollar, as we head into a very data-heavy week. A pending decision on the new Chairperson of the Federal Reserve awaits this Thursday. Gold continues to be under pressure, but Silver is hanging there. Palladium continues to look structurally impressive despite the pullbacks in its cousins.
Copper rolls over as China stockpiles of industrial metals rise. In the bigger picture though, copper still looks healthy.
Its all go in crude oil as Saudi Arabia and Russia suggest a production cut extension is a done deal. This has driven Brent through the magical $60.00 mark to the joy of OPEC and Non-OPEC no doubt. The technical picture looks exceptionally constructive, but beware our old friend the Relative Strength Index (RSI) which at these levels may suggest a short-term pullback is on the cards.
WTI has flown higher with Brent, and it is testing long-term resistance with no producer hedging it seems, to slow it down. A break of 54.70 suggests much higher levels but again beware an overbought RSI.
On the softs the word is Ethanol! Brent’s rally has dragged ethanol prices higher which is supporting sugar and corn. Both of these crops are favourite base components for the manufacture of ethanol. The story is not so exciting with Soybeans and Wheat with both looking decidedly offered as we start the week. Overall though, the softs are all still maintaining rather dull longer-term trading ranges.
Gold 0:0:00, Silver 00:04:30, Platinum 00:06:20, Palladium 00:08:05, Copper 00:10:15, Natural Gas 00:12:30, Brent Oil 00:13:50, WTI Oil 00:16:10, Sugar 00:18:30, Soybeans 00:19:45, Corn 00:21:20, Wheat 00:22:35.