ON WATCH Commodity analysis

Spot Gold, Oil and Copper price action

Time Frame : Daily and Hourly Charts

Spot Gold has finally broken up out of the downtrend and now the question is whether price can rally or will in be range bound for a while. At the moment, we expect price to be held down at 1755 and find support into 1680. Bulls will preferably want to see a higher low build above 1680 which will see a push up through 1755 and put the squeeze on recent sellers. Watching now for some setups for buying opportunities into local gold stocks as there has been some false starts in the past as Gold was heading lower.

Oil is also set for a move up as recently selling was quickly soaked up off lows into 57.55. As with Gold, the question is whether price will continue to be range bound and hold below the 62 area. For longs around current levels we will watch for a spike lower to build another higher low and a break of 60.05 (CFD price).

Copper is also range bound as traders assess current supply demand dynamics. Price is holding 8675 (CFD Price) and seeing buyers support price. Watching now for price to hold a higher low and soak up any weakness for a push up through 9196 and run into new highs.

The one theme they all have is for a coming weak USD. The themes into the USD may have changed if the above commodities price action is hinting too. The dollar recently found a safe haven bid from higher bond yields and we expect currency traders are now unwinding long dollar positions in favor of shorts from the massive stimulus supply. If that is the case we should see continued weakness into the USD to support the above bullish scenarios on Gold, Oil and Copper.

Commodity : Spot Gold, Oil and Copper

Status : On watch for a move higher

Spot Gold

Crude Oil

Copper