Introduction:

In commodity Copper faces persistent challenges as Chinese demand remains sluggish, causing prices to hover at $8,375 per ton. Despite briefly reaching $8.42 last week, the metal struggles amid concerns about China’s economic slowdown. In contrast, Silver, represented by XAG/USD, inches closer to a two-week high, with the 200-day SMA holding a pivotal role. Meanwhile, the broader commodity market witness cautious sentiment, with gold, natural gas, and oil prices experiencing their own unique dynamics.

Copper:

Chinese demand is still not picking up, which is hurting copper prices.

Copper is now $8,375 per ton, or $8.30 per kilogram. As long as demand is weak, copper has been under downward pressure. As China’s economy threatens to stagnate, the market is battling to boost demand for copper.

After reaching a weekly high of $8.42 last Friday, the price of copper per kilogram dropped down to $8.30 on Monday. The red metal is still struggling on the bottom end of the market despite the year’s quick ascent to $9.435 in January.

Copper prices have been range-bound for the past quarter as China’s economic recovery faces challenges. Chinese policymakers have expended a lot of time, energy, and money trying to maintain the Chinese economy’s successful “jumpstart” status, but consumers have so far mostly resisted their arguments.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 3.73 | positive Crossover | Bearish
• MA 20: 3.75 | positive Crossover | Bearish
• MA 50: 3.76 | positive Crossover | Bearish

Simple:

• MA 5: 3.74 | negative Crossover | Bearish
• MA 20: 3.76 | negative Crossover | Bearish
• MA 50: 3.76 | negative Crossover | Bearish

RSI (Relative Strength Index): 36.71 | Selling Zone | Bearish

Stochastic Oscillator: 4.21 | Sell Zone | Neutral

Resistance And Support Levels: 

• R1: 3.76 | R2: 3.86
• S1: 3.69 | S2: 3.61

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 3.67 | Take Profit: 3.61 | Stop Loss: 3.72

SILVER:

XAG/USD has come close to a two-week high, 200-day SMA holds the key for bulls.

Tuesday saw some drop buying for silver as it returns to a nearly two-week high. Before making aggressive directional bets, exercise caution due to the mixed technical situation. The 200-day SMA is likely to act as a turning point and restrain any additional increases.

Silver slightly recovers intraday losses to around $23.15 and moves back in the direction of a nearly two-week high reached this Tuesday. The price of the white metal is currently hovering around $23.25 in the early European session, remaining essentially constant for the day.

Technical Overview :

Moving Averages:

Exponential:

• MA 5: 23.19 | Positive Crossover | Bullish
• MA 20: 23.08 | Positive Crossover | Bullish
• MA 50: 23.26 | Positive Crossover | Bullish

Simple:

• MA 5: 23.18 | Positive Crossover | Bullish
• MA 20: 22.97 | Positive Crossover | Bullish
• MA 50: 23.48 | Negative Crossover | Bullish

RSI (Relative Strength Index): 56.33 | Buy Zone | Positive

Stochastic Oscillator: 96.43| Buy Zone | Neutral

Resistance And Support Levels: 

• R1: 23.37 | R2: 24.34
• S1: 22.81| S2: 22.02

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 23.60 | Take Profit: 24.33 | Stop Loss: 23.19.

Elsewhere In the Commodity Market.

Tuesday’s Asian session saw gold prices maintain recent gains above the $1,900 level. Before the major central banks’ monetary policy meeting, traders prefer to remain passive. Despite the drop on Friday, natural gas prices started the week strongly.

Tuesday marked the fourth straight session of price increases for oil as fears about a supply imbalance brought on both Saudi Arabia’s and Russia’s extended production curbs were increased by sluggish U.S. shale output.

Gold up (0.07%) at 1934.35, Silver up (0.37%) at 23.31, Palladium up (0.29%) at 1248.07, Platinum up (1.09%) at 943.16, Brent Crude Oil up (0.42%) at 94.85, WTI Crude Oil up (0.68%) at 91.20 as of writing time.

Key Economic Events & Data Release Today:

(EUR) CPI (YoY) (Aug) Forecast 5.3%, Previous 5.3% at 14:30.