Daily Spot: Metals

A weekly summary of one complex, including daily updates of other developments elsewhere.[pay]

Gold Feb (GCG) Monday and Tuesday’s struggle at 1381.00 was rewarded by gapping up to test the next objective at 1407.00. Price hovered at session highs through the day. Higher highs would target 1427.40. Pullbacks meanwhile have room down to 1388.00-1392.00 without sellers gaining traction.

Dollar Basket Mar (DXH) Tuesday’s gap down to 80.12 confirmed that lst week’s probes of 80.90-81.10 were distribution, and Monday’s test of 80.60 signaled that its previous recovery had failed. A drop back to 79.85 is possible. Tuesday’s recovery from the gap down failed to turn positive, so buyers expended a lot of energy while failing to gain traction.

30-year Treasury Mar (USH) Monday afternoon’s rally effort would have extended higher Tuesday if it were valid. By the same token, Monday’s lows should not have been retested again after launching Monday afternoon’s rally effort. Tuesday’s drop filled the gap back to 119’18. It must be rejected immediately Wednesday to avoid gaining traction.

Crude Oil Feb (CLG) Still waiting for a fresh high and its rejection before entertaining a short-entry.

Natural Gas Jan (NGF) Tuesday’s close above 4.21-24 was just as important as the character of price action. It did follow Monday afternoon’s surge with another, which would be appropriate for a rally this stage of the pattern. There’s still no time for much delay or pullback before extending higher.

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Daily Spot coverage schedule is: Currencies (Mon), Metals (Tue), Energies (Wed), Rates (Thu), Softs (Fri, coming).