The short-term market participant is always looking for ideas to trade core commodities either with options or with futures whether it be the regular or micro contracts. This post with charts is intended to deliver actionable intelligence to those who like to use some basic form of technical analysis while combining it with trading to the news related to each of these instruments. From our experience most of the following holds true for those of us who indulge in trading commodities:

• Most participants in the futures markets are commercial or institutional commodities producers or consumers
• Most participants are “hedgers” who trade futures to maximize the value of their assets, and to reduce the risk of financial losses from price changes
• Other participants are “speculators” who attempt to profit from price changes in futures contracts

Most retail traders fall under the third bucket as they are not looking for physical delivery or to hedge other positions they may be holding. Here is our take on some of these commodities:

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Gold (GCG25) 

Earlier last week, Gold futures benefited from news that PRC's central bank had resumed buying gold after a significant period of inactivity. Data reflect that PRC's central bank acquired close to 5T of gold in November. The move emphasis China’s role in the gold market. From a price perspective, after testing resistance above $2,700 earlier last week we pulled back following the CPI data and expectations this coming week of the Fed action on rates.

Gold and Silver charts (SIH25) 

Actionable thought: If 2676 holds into the Sunday open, expect 2658 as immediate profit target.

Silver

Actionable thought: If 31.400 holds into and past the Sunday open, expect 30.505 as immediate profit target.

WTI Crude Oil (CLG25) 

Oil is continuing its upside breakout after a shaky start past EIAs weekly inventory data and the higher than expected PPI, caused a sharper than expected intraday in most core commodities like Gold, Silver, Crude and Nat Gas. 

Actionable thought: If 70.00 holds into and past the Sunday open, expect 72.00 as immediate profit target into this weeks' inventory data with Feb'25 expiration futures.

Natural Gas (NGG25) 

Actionable thought: If 3.200 holds during this February expiration, expect prices to move above 3.69 as immediate profit target into the end of Feb'25 expiration futures.