Commodity Brief: Gold diverges to the upside

Oil was Thursday one of the big losers among commodities as it closed in NY around the $93 mark, losing almost -2% for the day, along with CRB index that lost -1.17% by NY close, printing fresh 2013 lows, despite the fact Gold managed to close in the positive. As GlobalFX CEO and former Head of Currency Strategy at the NAB and Westpac Gregory McKenna notes, Gold “took a bid tone from the equity sell off. If this is the new market meme for a while then Gold's weakness should be over for a little while and if it can break back into the recent down trend it has the potential for a substantial rally,” the analyst suggests.

Gold rose +0.80% by NY close at $1576, last at $1582, near daily highs, while Copper also closed in the negative by -1.07% in NY but is currently printing fresh session highs around $3.58, finding support at its 200 day SMA, last at $3.55. Oil instead printed a fresh 6-week low in its April contract at 92.63, just few cents away from the 38.2% Fibo retrace of latest daily leg up 84/98 at 92.80, also Oct '12 highs price zone, now having the 95 ask line as potential resistance as of neck line of a possible double high pattern at $98, pointing for a target at $92.

Iron ore also eased from fresh 2013 highs around the $160, highest since Oct 2011, last around the $156, down -2.5%. Risk aversion continued to hit the markets as money flew to considered safe haven assets making US 10 year bond yields print another low at 1.96%, lowest in 6 days, while USD index extended gains to fresh 4-month highs at 81.50, stalling around the 50% Fibo retrace of latest weekly leg down 84.1/78.6 at 81.35, last at 81.32, with commercial traders already in the net short side according to latest COT.