Base metals finished mixed yesterday. Copper dropped almost 0.5%, being traded below the $7,100 level intraday, a support mentioned by some technical analysts, due to the coincidence with the 38.2% Fibonacci retracement. Aluminium lost 0.4%, although it topped at $2,208.5. Fibonacci retracement at 50% seems to be the closest support, around the $2,145 area. Nickel dropped more than 2%, finding support at $12,600, even though the strongest support, already tested this year could be seen at $12,300. Zinc gained more than 1%, testing the previous multiannual high trading just below the $3,400 level, and in trading in the range $3,320-3,400. Cash to 3 months carry rose and closed at $25 backwardation. Lead remained almost unchanged, and tested once again the support $2,520 support level. A break through the current support could result in a drop of some $70. Full spread closed at $5.5 backwardation. Tin rose 0.2% and topped just below the $20,200. This morning most of base metals are slightly up, with the only exception of tin.
Gold remained trading around the $1,320 area, supported by the Chinese report halting buying US treasury notes, the fears about the US trade policy that could erase stocks and a rising EUR, due to the change in the message sent in the ECB December meeting, anticipating a tightening European monetary policy. Also Chinese high seasonal demand, ahead the Chinese New Year, is supporting prices. Range $1,300-1,325 seems to be the area of trading at the moment, the highest levels since September last year. Silver was trading around the $17, but did not profit from the gold trend. Current support could be $16.8 and resistance $17.3. This morning gold has topped at $1,330, the highest level since September, and silver recovered the $17.10 level.
Platinum found some ground and bounced back over the $980 level. Palladium was just trading at the same levels around the $1,080.
WTI remained almost unchanged, trading at $63.50 the February contract, down just $0.30 from previous close. Brent rose to $69.20, up just $0.05. Oil discontinued its rally due to the concerns on the US trade policy.
EUR rose intraday 0.9%, trading at the 1.2050 level, as a reaction of the already mentioned Chinese report that weighted on the USD and a hawkish ECB. GBP also rose around 0.3%, trading at 1.3544. This morning EUR is trading at 1.2060 and GBP at 1.3552.
Dax dropped some 0.6% yesterday, trading just above the 13,200 level, as concerns about the US trading policy rose. DJI rose some 0.35% instead, after the US announced that the Chinese report could be based on false information. Asian markets closed mixed yesterday, with Nikkei down 0.24%, Hang Seng slightly up 0.72% and Shanghai Composite at + 0.12%.
French Final CPI at 07.45, Italian Industrial Production at 09.00, Bundesbank President Weidmann Speaks at 16.30. US Retail Sales and Consumer Price Index at 13.30 and Business Inventories at 15.00.
This report was written at 7:30. All times referenced are GMT.
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