New Year Momentum: Commodities and Indices Show Strength

Yesterday, Monday, markets exhibited choppy movements with notable volatility across various asset classes. Starting with indices, the session began on a positive note during the European trading hours, followed by a sharp downswing in the early stages of the American session. However, indices recovered swiftly, producing a whipsaw effect. Today, the bullish sentiment persists, with markets pushing higher once again. For instance, the DAX is trading at mid-term highs, grappling with a key horizontal resistance. Meanwhile, the S&P 500 is challenging a dynamic resistance, but no clear long-term buy signal has been generated yet. That said, the overall sentiment for indices remains positive.

On the currency market, today’s winners are the New Zealand dollar and the Australian dollar, both showing notable strength. Conversely, safe haven currencies such as the American dollar, Japanese yen, and Swiss franc are underperforming, reflecting the market’s risk-on mood.

Commodities have also started 2025 on a strong note. Oil, particularly WTI crude, is already up by 3.5% this year, continuing its upward momentum. Precious metals, including platinum, silver, palladium, and gold, are also climbing higher. Yesterday’s trading in metals mirrored the whipsaw pattern seen in indices. Silver, for example, broke decisively above the $29.9 resistance level before sharply pulling back below it, only to reverse back above the same level later in the session. This confirmed $29.9 as a support, solidifying a positive outlook for silver and gold.

In terms of the macro calendar, the day began with inflation data from Switzerland, which met expectations at -0.1%. The Eurozone’s CPI flash estimate also came in as expected at 2.4%. Later in the day, attention will turn to key US data, including ISM services PMIs and jobs openings, which have the potential to inject additional momentum into the markets.

Currently, silver is holding its breakout and continues to offer a buy signal. Indices are climbing, oil is surging higher, and pairs with the yen are showing interesting buying opportunities. The mid-day European session on Tuesday underscores an overall positive sentiment across the markets.

Source: https://www.axiory.com/analytics/market-news/new-year-momentum-commodities-and-indices-show-str