COMMODITIES: Gold Back Above 20- and 50-Day EMAs

WTI futures have recovered from the early August low and this signals the end of the bear correction that started on Jul 23. The medium-term trend structure remains bullish and a continuation higher would refocus attention on $88.07, the Jul 23 high and the next key resistance for bulls. On the downside, key short-term support has been defined at $73.10, the Aug 5 low. Clearance of this level would reinstate a short-term bear theme. Gold is unchanged. A bullish theme remains intact for now and the metal is trading closer to its recent highs. A continuation higher would open $4507.1, 38.2% of the Mar 2 - Jun 30 bear leg. Key support and the bear trigger lies at $3943.3, the Jun 30 low. Initial firm support to watch is $4239.4, the 50-day EMA. Note that the daily condition is in overbought territory. A pullback would allow the oversold condition to unwind.

• WTI Crude up $0.53 or +0.62% at $85.41
• Natural Gas up $0 or +0.11% at $2.779
• Gold spot up $21.51 or +0.5% at $4355.8
• Copper down $7.8 or -1.18% at $651.25
• Silver down $0.27 or -0.42% at $63.0945
• Platinum up $12.95 or +0.75% at $1729.05

The trend in EuroStoxx 50 futures remains bullish and the latest pullback is considered corrective. Price has recently cleared 6462.00, the Jul 6 high and recent bull trigger, to confirm a resumption of the primary uptrend. Note too that moving average studies are in a bull-mode position, highlighting a dominant uptrend. Sights are on 6620.37, a Fibonacci projection. Key support is 6344.19 the 50-day EMA. Support at the 20-day EMA lies at 6466.56. A bull cycle S&P E-Minis remains intact and short-term weakness is considered corrective. A resumption of the uptrend would open 7849.93, a Fibonacci projection. Note that moving average studies are in a bull-mode position and this continues to highlight a dominant uptrend. Initial firm support to watch lies at 7681.23, the 20-day EMA. Support at the 50-day EMA lies at 7579.27. A pullback would be considered corrective.

• Japan's NIKKEI closed lower by 2134.31 pts or -3.16% at 65326.42 and the TOPIX ended 127.91 pts lower or -3.09% at 4012.31.
• Elsewhere, in China the SHANGHAI closed lower by 95.882 pts or -2.4% at 3894.422 and the HANG SENG ended 23.92 pts higher or +0.09% at 25495.07.
• Across Europe, Germany's DAX trades higher by 15.13 pts or +0.06% at 26141.73, FTSE 100 lower by 10.45 pts or -0.1% at 10717.27, CAC 40 up 27.56 pts or +0.32% at 8536.92 and Euro Stoxx 50 up 9.82 pts or +0.15% at 6477.99.
• Dow Jones mini up 1 pts or +0% at 53406, S&P 500 mini up 6.5 pts or +0.08% at 7720.5, NASDAQ mini up 39.5 pts or +0.13% at 29626.5.

• Volumes have picked up a touch as Bond futures fall back to their respective lows in EGBs.
• The German Bund traded as low as 123.60 Yesterday, but the next upside target in Yield resides at 3.30%, equates to 123.38 Today.
• As mentioned earlier, the long end 30yr leads.

(Chart source: MNI/Bloomberg Finance LP).