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.


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