Trade Alert – New Position – AA
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Commodities
Trade Alert – New Position – AA
Option Alert Service Signal New Trade Suggestion
Market Update – July 3
We wanted to provide a quick market update to our readers and subscribers this morning prior to the opening bell.
Oil prices continue to drift lower in early trading
Oil continues to find it hard work, building on the bullish breakout of mid June, having moved into a sustained phase of price congestion over the last few weeks, as it continues to slide lower ahead of today’s oil inventories report.
Gold looks like a trap up move!
As another trading month comes to an end, gold traders will be watching wondering and waiting as the precious metal is once again poised delicately at a tipping point on the daily chart.
Brent Steady As Iraqi Exports Look Unaffected
Brent crude oil (BNO, quote) was steady just below $114 as worries about a supply interruption in Iraq faded. The commodity traded at $113.78 at 8:50 GMT as investors evaluated whether or not the Middle Eastern nation’s ongoing conflict would escalate further and tighten global supplies.
Commodities (oil) reflect the global tensions
In any escalation of political tension oil and gold are the two key commodities to watch. For oil the breakout and surge higher was largely driven by events in Iraq coupled with supply issues at Cushing, both of which combined to help power the WTI crude oil (USO, quote) contract up to the $107 per barrel price point as evidenced by last Thursday’s wide spread up candle.
Chinese are drinking more coffee
A Chinese person drinks on average five cups of coffee a year. In a small town of south China’s Hainan province, this rises to 200 a year. The figure, which is comparable to the world’s average of 240 cups, has impressed international coffee dealers who are seeking to take a share of the market in China.
Gold recovers, but the rally looks weak
On the daily gold chart we are at an interesting phase of price action. The weakness in the price of gold has been clearly evidenced since mid March, with each rally higher petering out. This was then followed by an extended phase of price congestion which saw the precious metal oscillate between $1315 per ounce to the upside and $1280 to the downside.
Brent Steady On Promising Global Appetite
Brent crude oil (BNO, quote) was steady above $108 as encouraging data from the world’s top two consumers helped raise the global demand outlook.