Commodities are aiming higher amid a broad recovery in risk
sentiment across financial markets. A firm US economic data set may
reinforce the chipper mood.
Talking Points
- Gold, Silver May Rise with Stocks as Richmond Fed Survey
Buoys Sentiment
- Copper Technical Setup Boosts Likelihood of Bounce with
Overall Risk Trends
- Crude Oil Continues to Carve its Own Path, API Inventory
Report in Focus
Commodities are on the upswing in early European trade as risk
appetite firms across financial markets. Regional shares are
trading 0.5 percent higher on average, picking up
where Asian bourses left off
in the wake of a supportive Federal Reserve policy announcement.
Unexpectedly strong third-quarter UK GDP figures are likewise
offering a boost.
Growth-geared copper and crude oil prices are following stocks
higher as the day's news-flow buoys overall confidence in the
trajectory of global economic growth. Meanwhile, gold and silver
are enjoying a de-facto lift as the chipper mood dents safe-haven
demand for the US Dollar by virtue of being denominated in terms of
the benchmark currency.
S&P 500 index futures are trading firmly higher, hinting
more of the same is likely ahead as Wall Street comes online.
September's US Durable Goods and Pending Home Sales reports
headline the
economic calendar
in the hours ahead, with improvements expected on both fronts. This
stands to reinforce a risk-on tone amid hopes that a firming
recovery in the US will help offset sluggish performance in Asia
and a recession in Europe.
WTI Crude Oil (NY Close): $ 85 . 73 // - 0 . 94 // - 1 . 08
%
Prices continue to push lower
as expected
after taking out support at 87.66, the 38.2% Fibonacci expansion.
Sellers continue to take aim at the 50% level at 83.76, with a
break below that exposing the 61.8% Fib at 79.84. The 87.66 mark
has been recast as near-term resistance. A reversal back above that
targets the psychologically significant 90.00 figure and a falling
trend line set from late September, now at 91.84.
Daily Chart - Created Using FXCM Marketscope 2.0
Spot Gold (NY Close): $17 01 . 95 // -5 . 70 // - 0.3 3 %
Prices continue inch lower
as expected
following the formation of a bearish Dark Cloud Cover candlestick
patter. Sellers have taken out support in the 1732.33-35.65 area,
marked by a horizontal pivot level and the 23.6% Fibonacci
retracement, to challenge the 38.2% level at 1693.06. A break below
that targets the 50% Fib at 1661.32. Alternatively, a push back
above 1735.65 targets 1781.07, the underside of a previously broken
Rising Wedge pattern now recast as resistance.
Daily Chart - Created Using FXCM Marketscope 2.0
Want to learn more about RSI?
Watch this Video
Spot Silver (NY Close): $3 1 . 76 // +0. 07 // + 0 . 23 %
Prices are inching lower
as expected
after completing a Bearish Engulfing candlestick pattern coupled
with negative RSI divergence below the 35.00 figure. Sellers have
now taken out support at 31.83, the 38.2% Fibonacci retracement,
exposing the 50% level at 30.74. The 31.83 level has been recast as
resistance, with a break above that targeting the top of a falling
channel set from October's swing high (32.29).
Daily Chart - Created Using FXCM Marketscope 2.0
Want to learn more about RSI?
Watch this Video
COMEX E-Mini Copper (NY Close) : $3. 568 // -0. 002 // - 0 . 06
%
Prices broke support at 3.608, the 38.2% Fibonacci retracement,
to challenge the 50% level at 3.537. A Spinning Top candle above
this barrier warns of indecision and hints a bounce may be ahead.
The 3.608 mark has been recast as resistance, with a push back
above that exposing the 23.6% Fib at 3.695. Alternatively, a break
below support targets the 61.8% retracement at 3.466.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for
Dailyfx.com
To contact Ilya , e-mail ispivak@dailyfx.com . Follow Ilya on
Twitter at
@IlyaSpivak
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