 Hello, welcome to this week's CMC Markets Commodity Snapshot with myself Jasper Lawler. This comes the day after an epic ECB meeting in which they've announced quantitative easing finally after being talking about it for what is now years. So what we again want to have a look at is possibly the most influenced commodity by this and that's gold. Jasper wanted to do a quick recap on the sugar and coffee outlooks that we had on a previous snapshot. Now first taking a look at the sugar chart. This again is that daily sugar chart we were looking at. We were just basically going off this strong push higher from the previous multi-year low. And what you can see is that we have had a good rally from that. We're now running into this 200 day moving average. It does coincide with some peaks that we saw, a sort of trading range that we saw towards the end of August. So this especially in combination with that shooting star candlestick is a possible area to look at lightening up a little bit on this trade. There could be further to go but we're looking pretty overextended on the RSI. We're cutting into a couple of resistances through the price action. The coffee chart as you see is a bit of a more interesting one in a way because the move played out. We ran straight into that support area that we'd been mentioning around 180 as in those lows that we'd seen from November. And that corresponded roughly with the 200 day moving average. And basically prices just collapsed right from there and we're right back where we started. And this is an interesting one, quite where you would end up on this trade where you two have entered it. It just highlights the difference between analyzing a chart setup and actually placing the trade and triggering it. Because exactly where you entered here beyond this downsloping trend line would very much determine whether you would have wanted to take in your profits of 180 or not or whether you were looking for higher prices. So obviously the lower down you are, the lower risk you're taking, the more happy you are to take profits of 180. The higher you've brought up, 180 may just not be enough profits and you would have been looking for more and would not have been able to take them as of yet. So now we sit back at 157. It's another potential entry. But we should probably wait for a slightly more bullish move off that level as confirmation. It's looking like we could in fact break that level given the couple of tests that we've had. A support below could be in and around 142. Now back to gold. Gold was obviously what we looked at in last week's commodity snapshot. We've seen a continuing run higher from that inverse head and shoulders setup that we're looking at. And it does correlate to the story that we were talking about along the lines of the Swiss National Bank and why they reneged on their peg against the euro. It was because of what we thought was an upcoming QE program that was announced yesterday bigger than many expected. 60 billion euros are essentially going to be printed each month and that's going to do value the euro. And as such, people are going to want to move into more stable stores of value like gold. And that's the reason we've seen gold as of yesterday crash through the 1,300 barrier. It's a big psychological level so we could see some correction from there. Let's have a quick look at the chart. So chart very much left as it was in the last week's update. As you can see, we've run higher from where we were last time. And we're just at this previous peak from September and that 1,300 level. We could see a bit more of a pullback, but to be honest, we've already had a kind of doji-ish candle stick and then pulled higher from that. So corrections may not be too deep on this one. Gold does tend to move sideways and then rapidly in one direction or the other. So this 1,340 that we've been looking at as the full 100% extension of this inverse head and shoulders could be on sooner than we think. Now just to highlight exactly the correlation that we're talking about here and why we think gold could be a possibility for 1,340, perhaps even higher prices, given that this ETB QE program has now been announced. I want to show you a chart that we've actually shown in CNC markets before. It's basically a chart correlating the ECB balance sheet and the Fed balance sheet and the price of gold. So this chart's pretty clear cut. You can see there's the Fed balance sheet, which expanded massively with QE Unlimited, which was only just wound down in November. This chart is a bit out of date, but you can see the general principle here that we're trying to put across is that the Fed massively expanded their balance sheet. It's basically flat around that for 500 as we've got it in set in billions. But the ECB balance sheet contracted and that correlated nicely with the decline in gold that we saw. Now that the ECB are expanding their balance sheet again, if this correlation is to hold, as the ECB balance sheet goes higher, as should gold. That's it for this week's CMC Markets Commodity Snapshot. We're of course looking at gold and the QE has been announced. We're off to the races now, so let's see if this correlation can still hold up.