Daily Market Report: Gold, Silver, & US Oil
Gold’s price holds its ground despite ongoing USD strength as the Fed’s tone tonight is set to dictate flows.
GOLD: Holding its ground despite ongoing USD strength as the Fed’s tone tonight is set to dictate flows
Considering the (relative) slight drop in equities yesterday, expectations may have been for safe haven flows to rise. Instead, USD strength is limiting this pair’s price gains, and keeping the movement relatively consolidatory as its bull trend technical overview stalls heavily at the highs. But the catalyst for a move seems to be right around the corner with the Fed’s announcement, which is set to effect yields, and in turn possibly change appetite for the non-yielding safe haven asset who has gained considerable favor amongst institutional investors and retail traders who have both significantly upped their bias, to a majority long 68% and 85% respectively.
SILVER: Outperforming gold for a change, but still relatively rangebound
For this pair, it continues to be relatively consolidatory moves that are befitting its current consolidatory technical state whereby most of its technicals are neutral, and the remainder conflicting as its price crossed back above its 100-day moving average and is now above all its main long-term moving averages, but still below all its short-term MA’s. It’s always a tougher one to predict given consolidatory movement masking future direction, and it has overall managed to end higher thus far when the greenback weakens or if there’s sizeable strength in gold, though its clear that the precious metal’s cousin is outperforming.
OIL – US CRUDE: A higher finish following a sizeable API deficit
While demand side worries continue to put the pressure on the energy commodity, supply side worries such as rising geopolitical tensions and an API deficit of 8.1M yesterday have aided in taking oil prices higher. EIA is up next expected at -1.9M following last week’s -1.1M deficit, and there’s no denying the Fed’s release and Powell’s testimony will likely effect the USD aspect of this pair and overall demand for commodities if easing is mentioned. From a technical standpoint the indicators remain mostly neutral, but its price did cross above both the 50-day and 200-day moving averages.
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.
React to volatility on commodity markets
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
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.
