Gold, Silver and Oil Under the Spotlight

Gold

The precious metal suffered its biggest daily loss in almost three years on last Thursday, shedding over $40 thanks to the risk-on mood and positive data from the United States. While Gold is positioned for further punishment in the near term, the downside will be capped by global growth concerns and low interest rates across the globe. Where the metal concludes last week and performs in the week ahead will be influenced by the US jobs report scheduled for release on Friday afternoon. A strong US jobs report should cool US rate cut expectations consequently strengthening the Dollar, leading to weaker Gold prices.

Focusing on the technical picture, Gold is under pressure on the daily charts. Sustained weakness below $1525 should encourage a decline towards $1500 in the near term.

Silver

Silver bears were in the driving seat on last Thursday and drove the precious metal lower this morning as risk appetite made a return. The price action witnessed in Silver confirms its correlation with Gold prices. Further losses will most likely be on the cards in the near term if Gold continues to depreciate as investors shun safe-haven assets. In regards to the technical picture, Silver is under pressure on the daily charts with prices trading around $18.277 as of writing. The downside momentum should take prices towards $18.000 in the near term. A breakdown below this level invites a move lower towards $17.50.

Oil

Oil has scope to push higher towards $58.00 in the week ahead as easing trade tensions soothe global growth concerns and brighten Oil’s demand outlook. The renewed risk appetite should also support Oil’s upside gains in the short to medium term. However, with global sentiment still fragile the commodity is still susceptible to downside losses. Focusing on the technical picture, WTI Oil remains in a wide range on the daily charts. The upside momentum should open doors towards $58.00. A breakout above this resistance level could spark an incline higher towards $60.00.

For more information, please visit: FXTM

---

Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.