February 13, 2025 19:51 GMT
COMMODITIES: Gold Gains With Reciprocal Tariff Announcement, Copper Rallies
COMMODITIES
- Spot gold has extended gains following President Trump’s tariff announcements, with the yellow metal currently up by 0.8% on the session at $2,926/oz.
- Trump signed a measure directing the US Trade Representative and Commerce secretary to propose new levies on a country-by-country basis in an effort to rebalance trade relations.
- President Trump’s reciprocal tariffs will not go into effect today and could start by April 2.
- A bull cycle in gold remains in play, with sights on $2,962.2, a Fibonacci projection.
- Meanwhile, crude fell earlier in the session amid signs of easing Israel/Hamas tensions and ‘imminent’ Ukraine peace talks, before recovering losses as the dollar weakened following delays to Trump’s reciprocal tariffs.
- WTI MAR 25 is broadly unchanged at $71.3/bbl.
- WTI futures have pulled back from Tuesday’s high, with attention on $70.43, the Feb 6 low.
- This has been pierced and a clear break would undermine a bullish theme and confirm a breach of the 50-day EMA. This would strengthen a bearish threat and open $68.05, the Dec 20 ‘24 low.
- Copper has extended gains today, with the red metal up by a further 1.6% to $478/lb, the highest level since Sep 30.
- Copper futures remain in a bull cycle, with sights on $480.00, the Sep 30 high and bull trigger. Above here, next resistance is at $489.60, the May 28 ’24 high.
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