Home Commodities Gold, Silver and Crude Oil are in the Headlights

Gold, Silver and Crude Oil are in the Headlights



Gold: The precious Yellow metal suffered its biggest daily loss in nearly 3 years last Thursday, shedding over $40 due to the risk-on mood and positive data from the United States. While Gold is positioned for more punishment in the near term, the Southside will be capped by global growth concerns and low interest rates across the globe. Where it ended last week and performs in the weeks ahead will be influenced by the US jobs report released Friday. The strong US jobs report should cool US rate cut expectations consequently strengthening USD leading to weaker gold prices.

The technical picture: Gold is under pressure on the dailies. Sustained weakness below $1525 should encourage a decline towards $1500 near term.

Silver: The Devil’s Metal Bears were in charge last Thursday and drove Silver lower in the morning as risk appetite made a return. The price action seen in Silver confirms its correlation with Gold prices. Further losses will likely be on the cards in the near term if Gold continues to depreciate as investors shun safe-haven assets.

The technical picture: Silver is under pressure on the dailies with Sep 19 prices trading around $18.23 now. The momentum could take futures prices towards $19.00 near term, the breakdown below this level invites more Southside action.

Crude Oil: Crude Oil has scope to push higher towards $58.00 this week ahead as easing trade tensions soothe global growth concerns and brighten its demand outlook. The renewed risk appetite should also support Crude Oil’s Northside gains in the short to medium term. But, with global sentiment still fragile the commodity is still susceptible to losses.

The technical picture: NYMEX WTI Crude Oil remains in a wide range on the dailies. The Northside momentum should open way to $58.00. A breakout above this resistance level could trigger a move to $60.00.

We wait, we see.

Have a terrific week.

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S. Jack Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.