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Gold, Silver and Oil in Focus

By:
Lukman Otunuga
Updated: Aug 18, 2019, 13:05 UTC

Gold prices weakened on Friday but remain on track for a third consecutive weekly gain thanks to global recession fears, uncertainty over US-China trade developments and falling US bond yields.

Gold, Silver and Oil in Focus

Unfavourable global macro-economic conditions, lower interest rates across the world and the general uncertainty in the markets, should fuel demand for safe haven Gold moving forward. Focusing on the technical picture, Gold is heavily bullish on the weekly charts due to consistently higher highs and higher lows.

A weekly close above $1500 should open the doors towards $1535 and $1550, respectively.

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Silver remains in a bullish trend

Silver has gained roughly 0.81% this week thanks to geopolitical risk factors, global growth concerns and general uncertainty sweeping across financial markets.

The precious metal is bullish on the daily charts, with prices trading above the $17.00 level as of writing. There have been consistently higher highs and higher lows, with the commodity trading comfortably above both the 50 and 200 Simple Moving Average (SMA). A solid weekly $17.00 should encourage a move higher towards $17.40 in the week ahead.

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Oil smashed by demand side concerns

Oil prices collapsed like a house of cards, sinking below $54 as global recession fears fueled concerns over a drop in demand for Crude.

The dynamic moving oil prices are clearly shifting from the supply side to the demand side themes in the form of trade tensions and global growth fears. Although oil prices are pushing higher on Friday morning, the outlook remains negative with bears in control below $57.00. In regards to the technical picture, WTI Oil is bearish on the daily charts. A breakdown below $55.00 should open a path back towards $54.00.

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About the Author

Lukman Otunuga is a research analyst at FXTM. A keen follower of macroeconomic events, with a strong professional and academic background in finance, Lukman is well versed in the various factors affecting the currency and commodity markets.

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