Talking Points
- Crude Oil, Copper Aim Lower as Growth-Geared Assets Sink
After Fed Minutes
- Gold and Silver Under Pressure as Risk Aversion Boosts Demand
for US Dollar
Commodity prices are trading sharply lower as risk aversion
grips financial markets amid worries about slowing economic growth
after
minutes from June's FOMC meeting
failed to advance expectations of a QE3 program to be unveiled in
the near term. The Bank of Japan likewise disappointed on the
stimulus front, opted to
reshuffl e funds
between the credit-loan and asset-purchase programs instead of
expanding accommodative measures.
Sentiment-linked crude oil and copper prices are following
stocks lower. Meanwhile, gold and silver are facing de-facto
selling pressure as haven-seeking capital flows pour into the US
Dollar. S&P 500 stock index futures are pointing sharply lower
ahead of the opening bell on Wall Street, arguing for more of the
same in the coming session.
WTI Crude Oil (NY Close): $85.81 // +1.90 // +2.26%
Prices are testing above resistance at 10174, the 50% Fibonacci
retracement, after taking out falling trend line resistance set
from late May. A break higher initially exposes targets the 61.8%
level at 10209. Near-term support is marked by the trend line and
reinforced by the 38.2% Fib at 10139.
Daily Chart - Created Using FXCM Marketscope 2.0
Spot Gold (NY Close): $1576.40 // +9.13 // +0.58%
Prices broke support at 1575.81, the 38.2% Fibonacci expansion,
after
putting in a bearish Evening Star candlestick
pattern
below falling trend line resistance set from late March. Sellers
now aim to challenge the 50% Fib at 1555.61, with a break below
that exposing the trend-defining 1522.50-32.45 area. The 1575.81
level has been recast as near-term resistance.
Daily Chart - Created Using FXCM Marketscope 2.0
Spot Silver (NY Close): $27.13 // +0.30 // +1.13%
Prices are testing support is at 26.75, with a break below that
exposing the multi-month triple bottom at 26.05. Trend line
resistance is now at 28.02, with a breach above that exposing the
underside of a previously broken Flag formation (currently at
28.64).
Daily Chart - Created Using FXCM Marketscope 2.0
COMEX E-Mini Copper (NY Close) : $3.448 // +0.50 // +1.47%
Prices are testing support at 3.386, the 23.6% Fibonacci
expansion, with a break lower exposing the 38.2% level at 3.280 and
major double bottom at 3.250. Near-term resistance lines up at
3.450, the 14.6% level, with a breach higher targeting 3.535.
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
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