Gold finishes higher as US rate cut likelihoods rise, but silver and oil both dip
Large API US oil inventories surplus sends oil prices lower ahead of EIA's estimate this evening
GOLD: Relatively range-bound but finishing higher on a weaker greenback
Dismal US retail data that showed ongoing contraction and US yields in relative retreat gave gold's price a boost and aided the precious metal in finishing higher for the session, though in the context of overall movement it has been relatively range-bound. Following weakness in the US retail sector, rate cut likelihoods for the US Federal Reserve’s meeting towards the end of this month have risen significantly. Slight range-trading occurring amongst retail traders as the small move back up enticed a few longs into taking profit, and taking heavy short bias down 3%, no surprise given what has been mostly oscillatory movement.
SILVER: Underperforming compared to gold but avoiding heavy losses thus far
After suffering early on in the session with its price nearly reaching yesterday's 1st Support level, it alongside gold managed to rise back up and remain within its current consolidatory overview. Overall however, it underperformed compared to gold and failed to score a positive finish, as its technical bias remains tested in the short-term and failing to match its long-term weekly outlook that’s showing more positive technical bias. Retail sentiment is unchanged at an extreme long 86%, with more sizeable moves required for any significant change in long sentiment.
OIL – US CRUDE: Large inventories surplus keeps energy prices near the lows
Yesterday's American Petroleum Institute (API) result showed a massive 10.5M surplus, and as for this evening's Energy Information Agency (EIA) estimate, expectations are for a 3M surplus following last week's 2.9M surplus. Global demand growth worries persist, and the energy commodity has continued to remain relatively range-bound on the daily but showing ongoing negative technical bias with its price below all its main moving averages. Retail bias has in fact dropped a couple percent but remains at extreme long levels with an 80% reading.
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