Commodities News

Gold sentiment is ready to take more gains, but fundamental and technical studies suggest more caution ahead of significant catalysts such as central banks and US economic data.

After two days of decline, major grains are posting some recoveries on Wednesday as investors are digesting news about heat temperature in the United States, Russia soybean sales to China, and good news on Germany wheat crop.

Weak housing data fueled buyers to take positions. In any case, gold rebound seems to be short-lived as the dollar index remains strong, and the good US retail sales data is still in play.

Improvement in the crop situation and quality conditions have pushed prices down; while retail sales data is pushing dollar up, adding pressure to exports prices in the US.

On Tuesday, XAU/USD is trading 0.27% negative in the day at 1,410. Gold looks contained by the 1,420 resistance and supported by the 20-day moving average at 1,405.

With soybeans extending losses around 8.960, it is now trading 1.26% negative in the day. Next support will be the 20-day moving average at 8.917, and then the 200-day moving average at 8.765. Below, July 9 low at 8.660 is the area to focus.

Gold is currently moving in a small range between 1,410 and 1,420; the unit is 0.08% negative at 1,415. Technical indicators don’t show much upside potential for now. On the bigger picture, gold is trading sideways between 1,385 and 1,440.

In this framework, investors are betting for a reestablishment of the soybean demand, and prices are still trading up. On Friday, soybeans rallied to test the 9.000 area, and it is now posting 0.64% gains at 8.980.

Gold is trading at 1,404, 0.10% positive on the day, but the pair is losing steam as it jumped as high as 1,412 overnight. Technical indicators in the daily chart suggest more dovishness in the short term. For now, the 20-day moving average is acting as a support with the

The World Agricultural Supply and Demand Estimates recently reported showed that July’s “U.S. soybean supply and use projections for 2019/20 include lower beginning stocks, production, exports, and ending stocks.”

Currently, gold is trading 0.35% negative on the day at 1,413. Technical indicators are mixed with moving averages aligned to the upside but RSI and momentum showing some retracement expected.

Technical studies for soybeans are suggesting a continuation for the recovery in the grain. Next resistance is located at mentioned 8.860; then, the psychologic 9.000 level and the 9.150.

Gold and all metals are focused on Federal Reserve’s chairman Jerome Powell testimony before the US Congress. Also, what he is saying regarding the United States economy.

Soybean prices are moving higher on Tuesday as the unit found support 8.660 earlier in the session and it bounced back to trade at current levels around 8.750. On the day, the oilseed is performing 0.38% positive.

XAU/USD tested the 1,385 level earlier in the session on Monday, but it wasn’t able to break down that level and the unit returned to trade at current levels around 1,395, 0.14% negative on the day.

Investors on soybeans are digesting news that demand in China remains robust despite continued swine fever outbreak, but also, that Chinese scientist developed a gene-edited soybean that can grow in warmer climates.

XAUUSD is now moving at 1,404, 0.35% positive on the day. Technical indicators suggest more room for the downside, but the chart pattern is showing robust middle-term support at 1,380.

On the day, soybean prices failed to sustain gains performed on Wednesday, and it started dropping to trade as low as 8.684, its minimum since June 12. Then, the pair recovered some ground to current levels at 8.718, 1.20% down on the day.

The metal is consolidating levels between 1,410 and 1,425 as the unit remains slightly bullish, but a firm dollar is holding the metal at current levels. All focuses are now in the employment report.

Remember that markets in the United States are closed on Thursday due to the Fourth of July. Friday will be a volatile day with the release of the US employment report in the middle of a thin market due the long weekend started Wednesday.