COMMODITIES: Gold Remains Within Range of Recent Lows

This morning, Germany will hold its sixth 10-year Bund auction of the year. On offer will be E4.5bln of the 2.50% Feb-35 Bund.

• The size is in line with the last re-open of the 2.50% Feb-35 Bund on March 12.
• Recent auctions in the German 10y segment have passed smoothly, with solid bid-to-covers (in a 1.83x to 4.87x range since July), bid-to-offers (1.52x to 3.98x range since July) and the low prices above the secondary market mid-prices throughout 2024/5.
• For the last 2.50% Feb-35 Bund auction on March 12, the bid-to-cover stood at 2.12x, while the bid-to-offer came in at 1.62x.
• The next German auction will be E2bln of a (yet unspecified) Green line on April 8, while the 2.50% Feb-35 Bund will be reopened next on April 23, for E4.0bln.
• Timing: Results will be available shortly after the bidding window closes at 10:30GMT / 11:30CET.

SX5E (20th June) 5300c, sold at 127.60 in 6.5k vs 2.86k at 5225.00.

WTI futures traded sharply higher Monday. This undermines the medium-term bearish condition and instead signals scope for a continuation higher near-term. The rally has exposed the next key resistance at $72.91, the Feb 11 high. Clearance of this level would strengthen the bullish theme. On the downside, initial firm support to watch lies at $69.01, the 20-day EMA. A breach of this level would signal a potential reversal. The trend condition in Gold is unchanged, it remains bullish. The latest rally reinforces current conditions and confirms a continuation of the primary uptrend. The rally also once again, highlights fresh all-time highs for the yellow metal. Sights are on the $3151.5, a Fibonacci projection. Support to watch lies at $3004.9, the 20-day EMA. A pullback would be considered corrective.

• WTI Crude down $0.2 or -0.28% at $71.09
• Natural Gas up $0.02 or +0.48% at $3.967
• Gold spot up $20.3 or +0.65% at $3133.08
• Copper up $3.7 or +0.73% at $505.7
• Silver up $0.31 or +0.93% at $34.0041
• Platinum down $6.15 or -0.62% at $985.32