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.
With most of the United States indulging in its own turkey vs cranberry sauce arbitrage into the Thanksgiving holiday, activity has been noisy but light on substance with a light data week globally.
Gold, silver and platinum continue to grind higher with gold failing at 1300.00 overnight. The question remains, is this a dollar-driven move as the U.S. yield curve flattens, or is this two month bottoming the start of a new trend? There is a definite lack of momentum in all three which suggests their fates remain tied to that of the dollar.
Palladium’s chart maintains its long-term uptrend, but the shorter timescale suggests a welcome downside correction could be on the cards.
Copper broke it’s descending triangle, tot he upside! price action remains constructive despite yesterdays pullback.
Natural gas falls from near the top of its multi-month range due to better than expected weather in the U.S. At the end of the day though, it’s still in a range.
Brent and WTI Crude, in particular, see profit-taking ahead of the 30th November OPEC meeting. The charts suggest thought that the danger is still for deeper corrections to come although both are no longer overbought. Of the two, WTI looks more vulnerable as we head into oil’s Thursday moment of truth.
The softs have diverged this week.
Sugar saw the best of it and continues to look constructive. It is testing the top of its six-month rage at 0.1500 with the 200-day moving average just behind that at 0.15100.
Soybean’s chart is looking messy now, but as the dust settles prices are looking positive thanks to demand from China. As opposed to last week the beans look ready to test two month resistance.
Corn’s week-long short squeeze was unwound in one day, and it is now marooned mid-range. Exports have been poor.
Wheat’s global harvest weighs on prices as it tests support at 4.0340. We are still in a three-month range but long-term support looms at 3.9230.
Gold 00:00:00, Silver 00:03:05, Platinum 00:04:50, Palladium 00:07:00, Copper 00:08:50, Natural Gas 00:10:50, Brent Crude 00:12:10, WTI Oil 00:15:00, Sugar 00:16:10, Soybeans 00:17:55, Corn 00:20:00, Wheat 00:21:10