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.
The news has been “taxing” this week. Namely, the U.S. tax reform bill that appears to be moving towards an endgame. Having passed both Senate and House votes, it is up to the two sides to conclude a cohesive bill joint offering to send to president Trump. This has helped support the dollar this week. Next week we have the FOMC rate decision, with a 0.25% rise baked in what will be interesting, is the language of the statement.
Gold, silver and platinum have all turned down with the worst performer being silver. Gold has failed at 1300.00 and looks set to test longer-term downside support. Both metals still have large net long positions according to the Commitment of Traders (COT) report.
Palladium’s chart maintains its long-term uptrend, but the shorter timescale suggests a welcome downside correction could be on the cards.
Copper seems to be fading and looks set for a possible correction lower.
Natural gas has been experiencing some impressive intraday volatility on no particular news. At the end of the day though, it’s still in a range.
Brent and WTI Crude, in particular, see profit-taking post the November OPEC meeting. The production cut was extended as expected. Both contracts though have now failed to break their resistances suggesting a correction lower is on the cards. The COT report shows still massive speculative long positioning out there and it could be we are about to see some of that pressured.
Sugar continues to look constructive. It is testing the top of its six-month range at 0.1500 with the 200-day moving average now also at 0.15100. We have yet to see a clean break though.
Soybean’s chart is looking messy now, but as the dust settles prices are looking positive thanks to demand from China. The beans broke two-month resistance but have settled back to that resistance line at 9.9110. We now have a double top at 10.000.
Corn’s week-long short squeeze was unwound in one day, and it is now marooned mid-range.
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. Near-term resistance is now at 4.1900.
Gold 00:00:00, Silver 00:03:20, Platinum 00:05:10, Palladium 00:06:25, Copper 00:08:10, Natural Gas 00:09:50, Brent Crude 00:11:25, WTI Oil 00:13:30, Sugar 00:15:15, Corn 00:16:30, Soybeans 00:17:35, Wheat 00:19:45