Gold manages to finish slightly higher on dented trade hopes, silver remains range-bound

Waning trade optimism aids gold and silver in finishing higher for the session, while demand woes keep oil prices near the lows.

GOLD: Dented trade hopes and rising geopolitical tensions give the precious metal a small leg to stand on

Ongoing uncertainties on the trade and geopolitical front has given the pair's price a leg to stand on despite the US dollar relatively outperforming in the FX market and aided its weekly overview that is showing ongoing volatility be it to the upside or downside. The daily overview on the other hand, is more neutral and consolidatory, and hence in the absence of any significant news, reversal strategies may be more ideal. A negative Directional Movement Index (DMI) cross has occurred, though in the context of the overall technical (and fundamental) outlook carries little significance.

SILVER: Neutral and range-bound movement on the daily outlook

While the weekly outlook is showing a stronger touch of positive bias, on the daily all its main technical indicators are neutral, and following days of relatively oscillatory movement that has been testing trend and breakout traders to say the least, and where both retail and institutional sentiment remains in heavy to extreme long territories awaiting further upside movement.

OIL – US CRUDE: Retracement back down following waning trade optimism

Taking its cue from demand-driven factors, energy prices plummeted yesterday following the trade news out of China that reduced the chances of a limited past one trade deal to be signed. As for American Petroleum Institute's (API) estimate, it'll be released tomorrow due to Monday's US holiday, and with Energy Information Agency's (EIA) estimate the day after. The net result from yesterday’s movement is a retracement back down in the energy commodity’s price having failed to cross above any of its main long-term daily moving averages and taking retail bias back up towards extreme long levels standing at 81% now.


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