Gold, Silver and Oil Under the Spotlight

Buying sentiment towards Gold was dealt a heavy blow last week as renewed optimism over US-China trade talks encouraged investors to offload safe-haven assets and chase riskier investments.
Lukman Otunuga

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.

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