Commodities Report: August 16 — August 20, 2021

The metals-copper is one of the most liquid asset, presenting profit-taking opportunities in the market. Last week, the US job data triggered a $100 move to the downside for Gold and a move upwards due to inflation readings and the announcement on the approval of the US President $3.5 trillion stimulus plan. This volatility spike opened up gaps for markets trading.

The release of the FOMC meeting minutes is expected to model the trading behavior and actions of traders in the coming weeks in light of the winding down of the Fed’s quantitative easing (QE) program — a step away from interest rate hike and easy money making policy.

US retail sales data is another major indicator that will drive markets since consumer market drives 70% + of the market and plays a core role in the Fed’s tapering plan.

Brent crude is currently at $69.05 while WTI crude is at $66.83 per barrel. Prices may hit near sub-$100 per barrel by Q4:2021.

Definition of Terms

FOMC: Federal Open Market Committee meetings

Stimulus plan: when government increases spending by lowering taxes.

Redfox Analytics and Global Markets. https://www.linkedin.com/in/redfoxanalytics/