Introduction:

In the realm of commodities, Copper prices showed resilience, surging by 0.6% among industrial metals, driven by anticipation of further cues from China, a major player in the copper market, and supported by a weakening dollar. After experiencing losses over two days, copper futures quickly rebounded to $3.8045 per pound. This rally coincided with promising signs in China’s economic data, including new loans and inflation figures, hinting at a potential revival in the nation’s economy. Meanwhile, Gold prices have held firm at three-week lows, reacting to a surge in U.S. inflation data. The focus is shifted to US data.

Copper:

Copper gains as further China cues are expected. Copper prices among industrial metals increased 0.6% on Thursday as investors expected additional clues from the week’s top copper importer while also benefiting from a weaker dollar. Following two days of losses, copper futures rapidly increased by 0.6% to $3.8045 per pound. Futures were also trading higher for the week as China’s data on new loans and inflation suggested that the country’s economy may be beginning to revive. The country’s figures on industrial production and retail sales, which are due on Friday, are now being focused on more. Even though China’s imports of copper have been progressively declining this year due to the country’s poor economic situation, copper bulls are hoping that the country’s economic recovery will lead to a resurgence in demand for the red metal.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 3.764 | Positive Crossover | Bullish
• MA 20: 3.758 | Positive Crossover | Bullish
• MA 50: 3.763 | Positive Crossover | Bullish Simple:
• MA 5: 3.761 | Positive Crossover | Bullish
• MA 20: 3.747 | Positive Crossover | Bullish
• MA 50: 3.770 | Positive Crossover | Bullish

RSI (Relative Strength Index): 53.32 | Buying Zone | Bullish

Stochastic Oscillator: 86.59 | Buy Zone | Positive

Resistance And Support Levels:

• R1: 3.78 | R2: 3.86
• S1: 3.73 | S2: 3.68

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 3.81 | Take Profit: 3.86 | Stop Loss: 3.78

Gold:

Gold prices remain steady at three-week lows as U.S. inflation increases. As statistics revealed a higher-than-anticipated rise in U.S. inflation, gold prices moved very little in Asian trade on Thursday, stabilizing near three-week lows and continuing under pressure from the dollar. Despite Wednesday’s positive news on consumer inflation in the US, the price of gold remained steady as markets wagered that the Federal Reserve will continue to hold interest rates steady next week. Given that it is expected that U.S. interest rates will continue to be higher for a longer period, it was unclear whether gold prices could continue to hold near the $1,900 per ounce level. Additionally, the dollar remained stable below a near six-month high, which restrained any significant increases in gold.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 1909.49 | Negative Crossover | Bearish
• MA 20: 1917.09 | Negative Crossover | Bearish
• MA 50: 1920.86 | Negative Crossover | Bearish Simple:
• MA 5: 1909.26 | Negative Crossover | Bearish
• MA 20: 1917.29 | Negative Crossover | Bearish
• MA 50: 1924.49 | Negative Crossover | Bearish

RSI (Relative Strength Index): 38.87 | Sell Zone | Negative

Stochastic Oscillator: 13.29| Sell Zone | Negative

Resistance And Support Levels:

• R1: 1916.54 | R2: 1930.56
• S1: 1905.33| S2: 1883.60

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 1899.37 | Take Profit: 1883.60 | Stop Loss: 1910.94

Elsewhere In the Commodity Market:

Oil recovers as markets turn back to supply constraints. With China, the world’s top consumer of steel raw material, experiencing improved sentiment and some favorable fundamentals, the spot price of iron ore has increased to a five-month high. Gold is down (0.02%) at 1907.82, Silver is down (0.81%) at 22.62, Palladium is up (0.68%) at 1262.50, Platinum is up (0.49%) at 904.34, Brent Crude Oil is up (0.59%) at 92.42, WTI Crude Oil is up (0.63%) at 89.09 as of the time of writing.

Key Economic Events & Data Release Today:

(EUR) ECB Interest Rate Decision.

(USD) PPI (MoM) (Aug) Forecast 0.4%, Previous 0.3% at 18:00.