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Commodities Brief – Silver breaches 29.00, gold fortified by support as central banks remain in focus

Gold prices traded marginally higher overnight as the news out of the BoJ has given the yellow metal a definitely neutral look ahead of several key events today. With the continuation of asset purchases in Japan intact, investors are now looking ahead to the ECB interest rate decision later today along with several key US indicators that could rekindle the safe-haven status for gold should number prove to be unsatisfactory. In these moments gold is trading between its 20 and 50-day SMA, the former providing temporary support as the price settles at USD $1583.99 per oz.

Silver jumps to 29.00
The white metal has moved higher during European trading, as the spot price catapulted itself to the 29.00 region Thursday. With MACD levels trading sideways, the price of silver is now poised for a move higher towards the 29.50 resistance. Ultimately, the news surrounding the central banks or a string of successful US data later may dampen this view in the near-term. In these moments, the price of silver is testing the USD $29.00 per oz. level, trading marginally above its 10-day EMA.

Crude entrenched in familiar territory
WTI Crude oil has been stuck in the same area for the past several days, i.e. flirting with the 90.00 psychological barrier, whilst managing to stay just above it. Thursday has proved to be no different thus far, as crude prices have inched higher throughout European trading towards the USD $90.55/bbl region.

Forex Flash: Market too hawkishly positioned regarding the BRL – TD Securities

The Copom left the Selic rate unchanged at record low 7.25% as expected, although the market was pricing in a meaningful probability of rate hikes already this month. "However, the communiqué did come through with a message that reads more hawkish than we had expected", wrote analyst Cristian Maggio, pointing to potential rate hikes earlier than expected. “Yet, a move at the April 17th meeting still looks unlikely as the Copom voted unanimously for keeping rates unchanged (so there is no evidence yet that the Committee is getting divided on the direction of monetary policy)”, added Maggio.
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