Introduction:

In the world of commodities, Copper, a critical industrial metal, faces a downward spiral as concerns loom over China’s economic stability, the world’s largest copper consumer. Meanwhile, silver (XAG/USD) grapples with a setback, hovering near $23, influenced by the resurgence of the US Dollar Index amid a more prolonged outlook for higher interest rates by the Federal Reserve. Amidst these developments, the broader commodity market is witnessing fluctuations in gold and oil prices.

Copper:

Copper prices dip, China jitters persist

In terms of industrial metals, copper prices continued to decline on Tuesday due to ongoing worries about an economic downturn in China, which is the world’s biggest consumer of copper.

The troubled property developer China Evergrande Group (HK:3333) said this week that it will be unable to issue new debt due to a government inquiry, dealing a fresh blow to the nation’s spirits. This increased worries about more regulatory scrutiny towards the industry, which is already suffering from a three-year liquidity shortage.

The demand for copper is largely influenced by the real estate market. Futures for copper dropped 0.1% to $3.702 a pound, hovering around 1-1/2-month lows.

Technical Overview :

Moving Averages:

Exponential:

• MA 5: 3.67 | Negative Crossover | Bearish
• MA 20: 3.69 | Negative Crossover | Bearish
• MA 50: 3.72 | Negative Crossover | Bearish

Simple:

• MA 5: 3.67 | Negative Crossover | Bearish
• MA 20: 3.69 | Negative Crossover | Bearish
• MA 50: 3.73 | Negative Crossover | Bearish

RSI (Relative Strength Index): 37.74 | Sell Zone | Bearish

Stochastic Oscillator: 57.73| Buy Zone | Negative

Resistance And Support Levels: 

• R1: 3.74 | R2: 3.86
• S1: 3.65| S2: 3.53

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 3.62 | Take Profit: 3.53 | Stop Loss: 3.74.

SILVER:

XAG/USD stumbles, falling back to $23.

During Monday’s trade, silver plunged and rose, moving closer to $23.00.

On Friday, the XAG/USD was unable to surpass $23.80, and Silver is moving back toward the area of previous swing lows. The US Dollar Index is rebounding, which is causing the XAG/USD to go downward.

As the new trading week gets underway, silver is retreating even lower and hitting previous lows after last Friday’s rebound failed to hold.

The increase in the US Dollar Index (DXY) is limiting recent upward movements for the XAG/USD as the Federal Reserve (Fed) expects interest rates to remain higher for a longer period than previously anticipated.

Technical Overview :

Moving Averages:

Exponential:

• MA 5: 23.15 | Negative Crossover | Bearish
• MA 20: 23.23 | Negative Crossover | Bearish
• MA 50: 23.27 | Negative Crossover | Bearish

Simple:

• MA 5: 23.20 | Negative Crossover | Bearish
• MA 20: 23.26 | Negative Crossover | Bearish
• MA 50: 23.12 | Negative Crossover | Bearish

RSI (Relative Strength Index): 44.48 | Neutral Zone | Neutral

Stochastic Oscillator: 8.7| Sell Zone | Negative

Resistance And Support Levels: 

• R1: 23.64 | R2: 24.36
• S1: 22.82| S2: 22.00

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 22.64 | Take Profit: 22.00 | Stop Loss: 23.08.

Elsewhere In the Commodity Market.

Gold prices are declining as the dollar, and yield surge on hawkish Fed speak. Oil prices decline as the economic outlook outweighs tight supply

Gold was down (0.15%) at 1912.88, Silver down (0.35%) at 23.04, Palladium was down (0.41%) at 1224.00, Platinum was down (0.93%) at 904.50, Brent Crude Oil was down (0.77%) at 91.14, WTI Crude Oil down (0.88%) at 88.91 as of writing time.

Key Economic Events & Data Release Today:

(USD) CB Consumer Confidence (Sep) Forecast 105.5, Previous 106.1 at 19:30.