Scotiabank’s Global FX Strategy team observes renewed strength in non-energy commodities such as copper, while emphasizing that Gold remains anchored by the technically important $4500/oz level. They stress that this level has provided clear support so far, but warn that a downside break would imply a sizeable measured move lower based on their technical projections.

Technical focus on major support level

"Trading conditions are light and volumes are thin, reflecting today’s holidays in both the US and UK."

"The broader market’s tone is bullish and suggestive of risk appetite with US equity futures pushing to fresh highs as global benchmark oil prices trade down about $5/bbl on the day."

"The USD is soft and once again showing broad-based weakness against all of the G10 currencies as market participants signal renewed confidence in the prospect of a US/Iran deal."

"In terms of non-energy commodities we’re seeing renewed strength in the price of copper as it retraces its recent pullback from the record highs observed in mid-May."

"For gold, the technically relevant $4500/oz level has offered clear support, and we continue to watch for a break as the measured move target would suggest a ~$800/oz move (lower) from the level."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)