Talking Points:
- Gold priceswere headed for a weekly decline amid strength in USD and equities
- Oil pricesslipped on news of Iran’s absence from Doha meeting
- Copper prices set for the biggest weekly rise in 6 weeks after encouraging signals from China
Gold prices fell on a third consecutive day and were headed for the first weekly decline in three weeks, as strength in the dollar and globalequities curbed appetite for the safe-haven asset. Asian shares were subdued today but many of them still set for weekly gains. A sense of optimism over the Chinese economy after decent data solidified this situation.
WTI oil prices shrank to a current daily low at $40.92 and Brent oil prices fell towards its 200-day moving average in the early London morning. No particular trigger was reported for the move, apart from an earlier news that the Iranian oil minister will not attend Sunday’s Doha meeting and the governor of OPEC will represent Iran instead. Most good news regarding the output freeze discussion have been factored into market prices, hence any negative news may lead to high downside volatility.
Copper prices traded sideways on a third day today but were still on track to post the biggest weekly rise in six weeks. China’sfirst-quarter growth met forecasts while fixed assets investment and retail sales surprised to the upside, signalling that the economy could be stabilising. While copper prices may continue to fluctuate to movements in the US dollar, recent encouraging data from China likely provide support on the downside.
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GOLD TECHNICAL ANALYSIS – Gold prices slipped further and headed toward the support area of 1191-1207.6. The precious metal remains within a range, however downside risk may lead to a serious contest of the lower boundary.
Daily Chart - Created Using FXCM Marketscope
COPPER TECHNICAL ANALYSIS – Copper prices stayed resilient above the 2.1485 support level even as momentum started to wane. As upward pressure eased, the metal may become vulnerable to downside developments, although it will likely linger near the 2.1485 level.
Daily Chart - Created Using FXCM Marketscope
CRUDE OIL TECHNICAL ANALYSIS – Oil prices remained in the proximity of the $42.49 resistance level without clear chances of a break above. The waning momentum indicates an inherent downside risk coming into this week’s major oil event.
Daily Chart - Created Using FXCM Marketscope
--- Written by Nathalie Huynh, Currency Strategist for DailyFX.com
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