Oil rose after inventory data from the American Petroleum Institute showed on Tuesday that crude stockpile rose by 1.5 million barrels last week, about half of what was expected. Official production and inventory figures will be released by the U.S. government’s Energy Information Administration on Wednesday. This inventory data is expected to show a fifth straight week of increase.
Copper traded sideways as the USD held gains before Federal Reserve’s meeting. Copper premiums for China shipments have hit the lowest this year and physical market seems to be in no hurry to stock it up. Moreover, factories have swapped copper for its cheaper substitute – aluminium – with the help of technological innovation.
Gold reached the lowest in nearly two weeks yesterday and was largely unchanged today as investors wait for the outcome of the Federal Reserve policy meeting. A statement is likely issued at 1800 GMT. Safe haven demand has boosted gold to be the top performing asset since the start of this year, but that may change after FOMC’s decision.
GOLD TECHNICAL ANALYSIS – Gold parked on support trend line for a second day as market participants finalized their bets ahead of US FOMC meeting. This is a major event that will no doubt dictate the upcoming direction of gold price. Investors may adjust their bets or stay put.
Daily Chart – Created Using FXCM Marketscope
COPPER TECHNICAL ANALYSIS – Copper traded flat before major event risk today. The metal conformed to a range between support level at 2.1485 and past daily high at 2.3020. Low volatility is expected before the event risk.
Daily Chart – Created Using FXCM Marketscope
CRUDE OIL TECHNICAL ANALYSIS – Oil recovered modestly after two days of losses. Downward momentum is still dominant, thus the downside of oil price remains vulnerable. FOMC event today may initiate changes in market sentiment, specifically regarding oil.
