The biggest news for commodity markets is that US CFTC (Commodity Futures Trading Commission) chief has resigned. There will be some changes by the new CFTC chief. The new changes (if any) will be felt in metals trade and energies trade in the short term to medium term, depending on the new proposal and regulation. This uncertainty can result in traders reducing their open position in metals (not energies).
Since additional stimulus has not been announced, traders will shift focus to FOMC meet next week. There will be surprises in the FOMC meet if additional stimulus measures are not announced by the Biden administration by Monday.
A sustained crash in crypto currencies will result in short term traders switching to gold and precious metals. Trend of bitcoin and other crypto currencies till Tuesday is the key. Btc and other cryptos, in my experience, have generally pared weekly losses on Saturdays and Sundays.
Copper traders and copper investors are getting a bit restless/jittery at the moment. They have been used to quick price rise in the past three months. They are not able to digest a price consolidation. Copper price will be vulnerable to sharp short term corrections in case it does not break $8250 by next week. Overall trend is very bullish for copper. However I do not rule out a sharp correction.
COMEX SILVER MARCH 2021 – current price $2562.00
- Silver has to trade over $2484 till next week to rise to $2730.
- Silver will crash only if it falls blow $2484.
COPPER MARCH 2021 – current price $361.90
- Copper looks bearish and can fall to $350.50 and $342.20 first as long as it does not break $368-$372 zone
- Copper needs to trade over $372 to rise to $386 and $404.
- Fifty day moving average at $344.90 is the key short term support. Overall trend for copper is bullish as long as copper trades over $344.90.