🔍Commodities in Focus

🔍Commodities in Focus: Navigating the August 2023 Landscape

🔍 Spotlight: Commodities in August 2023

The commodities market is always a fascinating area of the financial world, and as we navigate through August 2023, there are some notable movements that every investor should have on their radar. Did you know commodities have outperformed the S&P for years now? Take a look at the S&P 500 (SPX) divided by the commodities index (DBC). As this chart goes down, it is telling you that the S&P is underperforming commodities since the peak in late 2020. So let’s dig deeper into the world of commodities and look for any opportunities.

📈 Gold's Subtle Shifts: Gold, often seen as a safe-haven asset, has experienced some fluctuations. A slight daily decrease of -0.18% is observed, with a more pronounced drop of -1.56% over the past week. It has been struggling with overhead supply ever since making new highs. However, on a brighter note, its year-to-date performance is in the green, boasting a 6.52% increase. Detailed Analysis

🛢 Oil's Steady Climb: The black gold isn't lagging behind. Both Brent Oil and Crude Oil WTI are on an upward trajectory. Both are clearly stuck in a range as you can see by looking at the individual charts. Will they be able to break to the upside soon or remain range bound and begin sinking back down? Their year-to-date performances stand commendably at 0.79% and 3.22%, respectively.

🌾 Agricultural Commodities on the Move: It's a mixed bag here. US Coffee C has seen a decline of -1.64% daily. US Corn and US Wheat have also been on the downtrend with drops of -1.69% and -1.60%, respectively. However, it's not all gloomy. London Sugar and US Cotton #2 are shining with positive growth, registering daily changes of +1.07% and +1.95%. We really like the setup here are London Sugar Futures. Here is what we are looking at.

📊 Deep Dive: The Power of Ratio Charts in Commodity Trading

For the uninitiated, ratio charts might seem like just another tool in a trader's kit. But in reality, they're so much more. These charts are pivotal in gauging the relative performance of one asset against another. For commodities, they can shed light on the strength of a particular commodity when juxtaposed against a benchmark or another commodity. For instance, a ratio chart comparing Gold to a broader commodity index can offer insights into Gold's performance in the broader commodities landscape. To further illustrate, the ratio chart comparing the performance of Gold Futures to the S&P 500 appears to be on the verge of a breakout. Will this turn into another rejection indicating Gold will continue it’s recent trend of underperforming the S&P 500? Or perhaps we see a breakout here and Gold starts outperforming relative to the S&P 500.

As always, thank you for trusting "Investment Intelligence" to keep you informed and ahead of the curve. Here's to making more informed decisions and capitalizing on the ever-evolving financial landscape.

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