Gold and silver drop as yields rise, oil dips on growth worries
Strong US earnings season start increases risk appetite and dents gold’s price, as prices remain relatively range-bound for silver.
GOLD: Precious Metal’s attraction drops as yields rise back up off the lows on earnings season start
Weeks of relative oscillation at the highs continued for this pair's price, with any fundamental shift in risk appetite likely to aid volatility strategies in the mid-term over short-term reversals where the bulk of its short-term daily technical indicators are mostly neutral. US earnings season is off to a slightly more positive start and as a result equities are rising and risk appetite has improved (even if trade worries haven’t subsided). Yields are rising back up off the lows, and that never helps non-yielding assets like the precious metal. Meanwhile, heavy long bias is up 4% to a heavy long 74%, still well below extreme long institutional bias.
SILVER: Finishing lower as its price remains relatively range-bound
More so than gold, the main technical indicators for silver are mostly neutral and with a non-trending Average Directional Index (ADX) on the daily technical outlook, with its price crossing back below the last of its main short-term moving averages in what has been relatively range-bound movement in its price for some time. While the weekly outlook is more positive, far more will be needed to tilt the precious metal's short-term view back towards the bullish side, and aid both retail and institutional traders holding heavy long bias.
OIL – US CRUDE: Testing long traders once more as oil prices dip for the second day running
Monday's losses were reinforced with Tuesday's slight dip in price following IMF’s reduced global growth forecasts to its slowest pace since the ’08 financial crisis, though early reports are suggesting a possible OPEC+ output cut. Earnings from industrials may highlight US demand, but out of China Producer Price Index (PPI) figures yesterday showed contracted as manufacturing continues to get tested, and in the process hurt demand for oil (and other commodity inputs). In terms of data, American Petroleum Institute (API) will be releasing its figure this evening, though moves are usually limiting as oil traders await tomorrow's more encompassing Energy Information Agency's (EIA) estimate.
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