Most commodities are trading in the red apart from oil

Commodities are mostly lower this morning with precious metals and base metals all trading in the red.

Oil is up +.035% at the time of writing after further escalation between Israel and Lebanon over the weekend.

In recent weeks oil have been more sensitive to good news on the geopolitical side compared to bad news, with pronounced weakness in oil on positive developments and smaller positive impact on oil prices from bad news.

On the technical side, WTI has once again managed to hold off a fourth test of key support around the $72 level. With US demand fears looking a bit overbaked, there could be more room for recovery.

However, the biggest risk for bulls right now is a cease-fire deal being reached.

This article was written by Arno V Venter at www.forexlive.com.