Commodities

Deteriorating steelmaker profitability, seasonal weakness and bearish technicals are weighing on iron ore. But with the price testing critical support, there's genuine two-way directional risk despite the substantial headwinds facing bulls.

Gold has bounced from a major inflection zone, but bulls still need follow-through as next week’s CPI report puts the recovery to the test.

As the trading week continues to unfold, gold is once again facing difficulties in regaining momentum in the short term. This can be seen in the performance of the last three trading sessions, where the metal has declined by approximately 0.9%, resuming a bearish dynamic that has once again become evident in recent market activity.

Gold is testing a major inflection zone as stretched downside momentum raises the risk for a reaction into key support.

Softer inflation has revived expectations for a Fed pause, but Friday’s payrolls could put gold’s recovery prospects to the test.

The 10-year Treasury yield is testing a resistance zone respected since the 1920s, as bearish RSI divergence signals fading upside momentum.

A hawkish Fed, surging short-dated Treasury yields and a firmer dollar failed to deliver the kind of damage usually seen in precious metals.

Gold is attempting to stabilize near a pivotal technical zone, with the Fed decision poised to provide the catalyst for the next major move.

As the trading week comes to an end, one of the most relevant developments has been the neutral behavior displayed by gold in the short term. Over the last four trading sessions, price action has registered only a modest move of around -0.36%, a dynamic that highlights the recent lack of momentum around the metal.

Gold is attempting to regain its footing after a sharp pullback, with the September range taking shape ahead of a critical stretch of event risk.

During recent trading sessions, a new wave of buying momentum has continued to gain relevance around WTI crude oil price action. Over the last three trading sessions, the market has maintained a bullish streak and is now up more than 5.5%, highlighting significant buying pressure in the short term.

The trading week is getting underway and, for now, gold has struggled to maintain the strength that characterized its performance in previous weeks. Average price action over the last two sessions shows a decline of roughly 1.5%, reflecting a loss of momentum that has started to highlight a more neutral market environment.