Gold and silver manage to finish higher but oil drops again
US-China trade talks set to dominate the session prior to US inflation figures.
GOLD: Finishing higher but only just
Anything related to the US Federal Reserve (Fed) usually keeps this pair volatile, and not just the greenback but interest rates matters for this pair, as its denominated in the dollar and as a precious metal that doesn’t yield an interest rate compared to fiat currencies that do. And hence, the minutes released yesterday were largely mixed, and gold’s movement has been volatile but consolidatory, while showing ongoing positive technical bias. Up next, Consumer Price Index (CPI) figures out of the US expected to show modest 0.1% growth, and with trade talks in the background and geopolitical tensions that never seem to subside.
SILVER: More positive technical bias forming ahead of fundamental news
It continues to be a question of the extent to which silver follows gold in terms of direction, but with a tendency to overshoot and experience more volatility and unexplained additional movement. As a result, reversal strategies and breakouts for conformist and contrarian strategies respectively have been the items to be on the look out for, and where fading ones are at greater risk of getting stopped out.
OIL – US CRUDE: Another crude oil inventories surplus keeps its price close to the lows
Energy Information Agency's (EIA) US crude oil inventories came in at 2.9M yesterday following 1.8M surplus expectations that weren't too far off American Petroleum Institute's (API) 4.1M surplus the evening before. And as it stands, the pair's price has been experiencing downside bias that has been testing both retail and institutional traders. The overview remains tricky, as the weekly outlook is consolidatory but where supply side shocks place preference on volatility strategies, and with negative technical bias as most of its main long-term moving averages are huddled close to each other and require little to cause a signal on a shift. This is despite rising geopolitical tensions in the Middle East.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
See an opportunity to trade?
Go long or short on more than 17,000+ markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
