Gold and silver are extending their declines in early European trading following a dramatic drop on the back of better-than-anticipated US jobless claims figures on Thursday. The precious metals may be exposed to further declines on an upside to surprise to US consumer sentiment figures due in the session ahead. Meanwhile, the crude oil bears may be set to stage a return if the recent retreat in equities spills over to broad-based risk aversion.
Precious Metals Plunge On Firming US Data
Silver posted its largest single day percentage decline in almost a month alongside steep falls in gold, following a drop in jobless claims in the US to the lowest level in 7 years. The losses accelerated on a reported a rise in US year-on-year inflation to the highest level since
Traders should pay additional consideration to the implications of waning geopolitical risks on the precious metals. Ongoing turmoil in
Crude Oil Exposed To Souring Sentiment
While recent commodities reports have generally focused on the supply and demand story for WTI prices, an undercurrent for the direction of crude oil is offered by general risk-appetite. The additional guidance offered by investor sentiment is made more noteworthy by the recent pullback in US equity benchmarks, which serve as a proxy for risk-trends. With technical indications suggesting the
CRUDE OIL TECHNICAL ANALYSIS
Sentiment may be shifting for crude oil following a failure to breach the 102.30 mark in recent trading. The formation of an Evening Star candlestick pattern near the resistance level suggests the bears may be looking to stage a return. However, with prices above the 20 SMA and a positive reading from the rate of change indicator a mixed technical bias is offered.
Crude Oil: Recovery Stalls At Nearby Resistance
GOLD TECHNICAL ANALYSIS
Several Doji formations on the daily suggest hesitation from the bears as gold teases at a push above critical resistance at
The DailyFX Speculative Sentiment Index suggests a mixed bias for gold based on trader positioning.
Gold: Dojis Highlight Trader Indecision
SILVER TECHNICAL ANALYSIS
Silver's pullback overnight has resulted in the formation of a Bearish Engulfing pattern on the daily, which suggests the bears may be looking to push prices back to the
COPPER TECHNICAL ANALYSIS
The copper bulls are showing signs of hesitation as prices stall near the 50% Fib Retracement level near
Copper: Bulls Lose Steam Near Fib Level
PALLADIUM TECHNICAL ANALYSIS
Palladium has staged a false breakout with prices pulling back below the
Palladium: Stages False Breakout As Prices Pullback
PLATINUM TECHNICAL ANALYSIS
Platinum's rally has been cut short just shy of its 2014 high near
Platinum: Bearish Pattern Awaits Confirmation