Trading in the commodity complex was largely driven by the move in the U.S. dollar. In the beginning of the week, the U.S. dollar moved higher on the durable goods report released Tuesday suggesting business investment is slowly starting to pick up following stronger-than-expected consumer prices last week. The U.S. dollar moved lower on Friday following a weak GDP report and as a result crude and gold moved higher. For most of 2015, gold has been trading in range around $1,200 as it struggles to find conviction to the up or downside as interest rate hike speculation is trumping fundamentals. Eric Zuccarelli, independent metals trader on the NYMEX trading floor, tells TheStreet’s Jill Malandrino it has mostly been more of a technical trade in gold. The one metal bucking that does not move with the U.S. dollar as much is copper. Zuccarelli explains it tends to trade its own way relative to other metals and is tied more to supply and demand fundamentals. This week traders were liquidating copper positions following the lofty levels it was trading at and is now making lower lows, which from a technical analysis perspective is bearish. Zuccarelli thinks there will be more selling pressure in copper.
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