Copper Price Jumps on Demand Optimism after China Home Price Data
18 Mar 2016 06:31, GMTTalking Points:
- Gold price held up after Bank of England kept rate unchanged
- Oil price reached 2016 high at 40.55 on optimism of an output freeze
- Copper price hit the highest since November as China’s home prices rose the fastest in 2 years
U.S. oil price reached a new high for 2016 at 40.55 in the Asian morning, adding to strong gains yesterday as optimism grew that major producers were close to an agreement on output freeze. Oil price has rallied on the back of improved risk appetite and lower US dollar. However as seen repeatedly in the past, oil price can slip just as fast upon the first signs of oversupply or demand constraint.
Copper price also jumped 1 percent to hit the highest since November after the dollar plummeted. It looks to post gains for a fourth week in five by this week’s close. Industrial metals gained further as China’s home price data rose at the fastest pace in almost two year, boosting demand optimism in metals.
Gold price traded flat with an inside-day pattern today. The decision of the Bank of England to hold rate unchanged following a dovish bias from the US Federal Reserve have provided a supportive environment for gold. The precious metal may continue to linger near its recent high at 1284.6.
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GOLD TECHNICAL ANALYSIS – Gold price formed an inside day today and upward pressure continued to build up. Gold investors may find low volatility in the week ahead as prices linger near its recent high at 1248.6.
Daily Chart - Created Using FXCM Marketscope
COPPER TECHNICAL ANALYSIS – Copper price broke 2.3020 resistance level today, a good sign that it may eventually climb to the upper region. Support trend line will likely contain the downside of copper price for now. A clean breach above 2.3020 would confirm upside potential.
Daily Chart - Created Using FXCM Marketscope
CRUDE OIL TECHNICAL ANALYSIS – Oil price traded near yesterday’s high while a previous resistance level at 38.36 has turned into a support level. The rise in oil price could sustain through to next week if this support level is not broken.
Daily Chart - Created Using FXCM Marketscope
--- Written by Nathalie Huynh, Currency Strategist for DailyFX.com
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Contact and follow Nathalie on Twitter: @nathuynh
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.