COMMODITIES: Gold Hits New Record High, Copper Pulls Back, WTI Edges Up
Mar-27 18:55
- Gold reached a fresh all-time high as haven demand remained high following President Trump’s auto tariffs announcement. Spot gold is currently up 1.2% on the day at $3,057/oz, just $3 below the earlier high.
- The trend condition in gold remains bullish, with sights on $3,079.2 next, a Fibonacci projection.
- Yesterday, Goldman Sachs raised their year-end gold forecast to $3,300 from $3,100, putting their forecast range to $3,250-3,520.
- Citing upside surprises in ETF flow and continued strong central bank demand, they see medium-term price risks skewed to the upside.
- In contrast, copper has pulled back from yesterday’s record high, falling by 2.3% today to $512/lb.
- The move likely reflects traders taking profits and reassessing scope to secure new supplies before tariffs take effect. Goldman Sachs still expects copper demand and supply imbalances to favour more bullish price action into Q3.
- A bull cycle in copper futures remains in play. A clear break of major resistance at $519.90, the May 20 ‘24 high, would open $542.70, a Fibonacci projection.
- Meanwhile, WTI is slightly stronger today, driven by US inventory drawdowns and expected reductions in global supply amid tighter restrictions against Iran and Venezuela. Worsening Middle East tensions and ongoing US-Russia-Ukraine negotiations heighten market uncertainty.
- WTI May 25 is up by 0.4% at $69.9/bbl.
- Despite recent gains, a bearish trend condition in WTI futures remains intact, and gains are considered corrective. However, a key resistance at $69.17, the 50-day EMA, has been pierced, opening $70.98, the Feb 25 high.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
GBPUSD TECHS: Bull Cycle Remains In Play
Feb-25 18:30
- RES 4: 1.2811 High Dec 6 ‘24
- RES 3: 1.2831 2.0% 10-dma envelope
- RES 2: 1.2767 50.0% retracement of the Sep 26 ‘24 - Jan 13 bear leg
- RES 1: 1.2691 High Feb 24
- PRICE: 1.2654 @ 16:42 GMT Feb 25
- SUP 1: 1.2563 Low Feb 19
- SUP 2: 1.2522 50-day EMA
- SUP 3: 1.2440 Low Feb 13
- SUP 4: 1.2333 Low Feb 11 and a key support
A bull cycle in GBPUSD remains in play and the pair is holding on to the bulk of its recent gains. Fresh short-term gains confirm a resumption of the uptrend and maintain the current sequence of higher highs and higher lows. An extension would strengthen the bullish condition and open 1.2767, the 50.0% retracement of the Sep 26 ‘24 - Jan 13 bear leg. Initial firm support to watch is 1.2522, the 50-day EMA.
PIPELINE: Corporate Bond Issuance: $5B Citigroup 3Pt Launched
Feb-25 18:26
- Date $MM Issuer (Priced *, Launch #)
- 02/25 $5B #Citigroup $2.25B 4NC3 +70, $750M 4NC3 SOFR, $2B 31NC30 +105
- 02/25 $1.8B #Southern Co 30NC10 6.375%
- 02/25 $1B #Dow Chemical $400M 10Y +105, $600M 30Y +140
- 02/25 $750M #KeyCorp 6NC5 +98
- 02/25 $500M #Emerson Electric WNG 10Y +70
- 02/25 $Benchmark State Street Corp 3Y +45, 5Y +60, 11NC10 +85
- 02/25 $Benchmark Caterpillar 3Y +55a, 3Y SOFR
US: FED Reverse Repo Operation
Feb-25 18:21
RRP usage rebounds to an even $96.0B this afternoon from $76.818B on Monday. Compares to Friday, February 14 low of $58.770B - the lowest level since mid-April 2021. The number of counterparties at 36 from 30 prior.
