Silver outperforms compared to gold, oil in focus ahead of OPEC+
Gold finishes lower for the session but weekly 1st Support level holds, oil swings on API deficit and geopolitical news.

GOLD: Short-term level gets breached as recent gains get undone and yields rise back up
The pair’s price breached its short-term support level yesterday and finished lower for its fourth consecutive trading day, following an undoing of its daily bull trend technical overview earlier in the week as it stalls at the highs and entices breakout strategies instead. However, long-term bias still looks bullish, and the 1486 weekly 1st Support level is still holding. Safe haven in general has been in retracement with bonds plummeting and taking yields back up, and that’s hurting non-yielding assets like gold in the process, even if the greenback isn’t outperforming in the FX market.

SILVER: Outperforming and finishing higher for the day despite gold’s price drop
Silver outperforming compared to gold has been a more common theme as of late even as this pair’s bull trend technical overview stalls at the highs offering more retracement than bullish momentum. The gains yesterday were minimal at best against a greenback that’s barely outperforming in the FX market, though if the gold-silver spread is anything to go by, further gains in silver can’t be ruled out (or at the very least if both drop gold may suffer a larger price drop). All aspects of this precious metal are getting hit, and yet it’s likely that technicals for the time being are holding it higher. Should the contrast between technicals and fundamentals rise however, and a reversal could eventually be in store.

OIL – US CRUDE: Mixed news infuses oil with volatility ahead of OPEC+ meeting
On the one hand, a larger than expected 7.2M drawdown according to API’s estimate should have left oil prices finishing higher. Yet, news of Bolton’s dismissal was seen as a potential improvement in geopolitical tensions with some oil-producing countries, though it’ll take time to see if anything concrete emerges on that front. That has left oil prices finishing lower for the session but failing to erase what has been relatively positive technical bias ahead of the OPEC+ meeting. In terms of data, EIA’s more encompassing estimate is up next, projected to show a more modest 2.7M deficit. Retail bias is now close to the middle, with any significant price drop likely to shift sentiment back to majority long.

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.