Silver outperforms compared to gold while oil oscillates
Both gold and silver finish higher for the session, while oil’s price continues to oscillate as the tussle between possible supply-side shocks and dented demand continue.
GOLD: Finishing higher but not by a significant margin
A worsening global economy and trade talks that haven't lead anywhere gave the precious metal a slight leg to stand on yesterday, and enticing more retail longs into taking profit with majority long bias dropping 3% to 64%. A positive DMI cross has occurred, and its price is above all its main moving averages but with the remaining main technical indicators neutral and a non-trending Average Directional Index (ADX). US data will be released tonight in the form of The Conference Board’s (CB) consumer confidence figure, and while in it of itself it won’t carry much significance, combined with more US data this week and Non-Farm Payrolls next week, it’ll be important in determining how the now data-dependent US Federal Reserve may react down the line.
SILVER: Outperforming against gold again as bull trend technical overview returns
In a single surge the pair’s price moved back above the last of its main short-term moving averages and outperformed against gold for the day. In the process, its daily technical outlook has returned to a bull trend, lining up better with its mid to long-term weekly outlook of a bull trend that had been stalling as of late. Given much of the movement has been unexplained however, and that means significant volatility in either direction can’t be ruled out. In terms of sentiment, retail bias dropped 5% but is still at extreme long levels.
OIL – US CRUDE: Consolidatory moves but volatility still can’t be ruled out given geopolitical tensions have yet to subside
Oil prices dipped earlier in the session thanks to worse than expected Purchasing Managers’ Index (PMI) figures out of Europe, Australia, and this morning with Japan as well. And while it managed to finish higher for the session, that has kept its movement consolidatory and befitting its current technical overview. However, volatility could easily return, especially on the weekly outlook, and as a result mid to long-term the strategy on wider levels should be a breakout, while for short-term movement reversals with the stop losses in place so as not to get stuck. In terms of bias, retail sentiment has dropped 6% but is still majority long at 61%.
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.
