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2 Apr 2013
Commodities Brief: Almost everything lower but Gold
FXstreet.com (Barcelona) - Weak day for commodities overall Monday but Gold, that trades above the $1.6k last, despite the fact USD is also down across the board. Iron ore has also recovered from late March lows by the 38.2% Fibo retrace of 88/160 daily up leg at around $133 mark, last slightly above $138, dragging Aussie also higher ahead of RBA meeting in few minutes from now. US SP500 index also showed weakness closing at -0.45%, while US 10 year note yields kept pressing the 1.83% level on some risk-off move across the markets.
Oil had a strong start early Monday in Asia but soon gave all gains up and printed weekly lows barely below the $96 mark for the April futures contract coming all the way from highs at $97.8. According to 2ndSkiesForex founder Chris Capre: “The commodity is approaching critical resistance above at $98.00, and the first test just shy of this level formed a two-way outside bar (technically an engulfing bar, but moreso due to the holiday trading last Friday),” the analyst noted.
“The nature of this bar suggests the first presence of sellers in over 6+ days, so upside rallies may encounter resistance,” Chris suggests. As for the CRB index, it closed lower for second consecutive day down -0.61%, with Silver down -1.37% printing fresh lows since August along with Copper, along with other soft commodities such as Wheat that printed its lowest price since June last year. Lower than expected US ISM manufacturing PMI and worst in last three months weighed on market sentiment.
Oil had a strong start early Monday in Asia but soon gave all gains up and printed weekly lows barely below the $96 mark for the April futures contract coming all the way from highs at $97.8. According to 2ndSkiesForex founder Chris Capre: “The commodity is approaching critical resistance above at $98.00, and the first test just shy of this level formed a two-way outside bar (technically an engulfing bar, but moreso due to the holiday trading last Friday),” the analyst noted.
“The nature of this bar suggests the first presence of sellers in over 6+ days, so upside rallies may encounter resistance,” Chris suggests. As for the CRB index, it closed lower for second consecutive day down -0.61%, with Silver down -1.37% printing fresh lows since August along with Copper, along with other soft commodities such as Wheat that printed its lowest price since June last year. Lower than expected US ISM manufacturing PMI and worst in last three months weighed on market sentiment.