Gold and silver traders are treading cautiously during the Asian session following a jump in prices overnight as intensifying geopolitical risks bolstered safe-haven demand for the precious metals. Meanwhile, a better-than-anticipated US services index reading failed to fuel gains for crude oil as WTI continues to struggle below a key technical level of resistance at
Ukrainian Turmoil Intensifies
As noted in recent commodities reports; a continued recovery for the precious metals hinges on an escalation of geopolitical tensions, or an enduring slumber for the US Dollar. The latest developments in the ongoing
By their very nature geopolitical events are difficult to predict, which leaves continued uncertainty over the potential for the Ukrainian unrest to escalate. While the fuse is lit, unless we see the powder keg go off, traders may be tempted to unwind some fear-driven positioning in the precious metals.
Also noteworthy for the commodities space is the potential impact of the tensions in
Crude Oil Traders To LookPast Upcoming Trade Balance Figures
The US Trade Balance is tipped to post its first improvement since
While strong US growth is a positive for crude oil, the glut in US inventories is likely acting as an albatross around the neck of WTI with stockpiles recently reaching their highest level since 1931. Indeed, the bullish implications for US economic growth from last night's healthy services index reading failed to lift prices, as concerns that demand will be unable to mop up excess supply persist. This puts Wednesday's weekly Petroleum Status Report from the DOE in the spotlight, which is expected to reveal a 1,000K barrel increase in crude inventories.
China Concerns Weigh On Copper Prices
A busy week for Chinese economic data is off to a bad start following yesterday's disappointing HSBC Final PMI figures for April, which weighed on copper prices. Exports from the manufacturing powerhouse are expected to decline by 0.9 percent which would mark the third consecutive month of declines. While a far cry from February's distressing 18.1 percent drop, the persistent weakness in Chinese economic data does little to distill fears of a slowdown of economic growth in the Asian giant.
Details for the upcoming releases are reproduced below (times are in GMT).
CRUDE OIL TECHNICAL ANALYSIS
Crude oil has broken below trendline support following the emergence of an Evening Star formation on the daily. Alongside building downside momentum (reflected by the rate of change indicator) and a move below the 20 SMA a bearish technical bias is retained. The daily close below the psychologically significant
Crude Oil: Testing Critical Resistance At
GOLD TECHNICAL ANALYSIS
Gold has bounced off key support at
The DailyFX Speculative Sentiment Index suggests a mixed bias for gold based on trader positioning.
Gold: Prices Hovering Near Support At
SILVER TECHNICAL ANALYSIS
Friday's bounce off the all-important
Silver: Prices Reverse Course Near
COPPER TECHNICAL ANALYSIS
Copper's ascending trend channel remains in place after prices threatened a breakdown last week. The appearance of a Morning Star pattern suggests the bulls may be looking to return. A break above nearby resistance at
Copper: Bounces Off Trendline Support
PALLADIUM TECHNICAL ANALYSIS
Palladium remains in an upward trend channel following the original breakout above the range-top at
Palladium: Teases Traders Near 2014 High
PLATINUM TECHNICAL ANALYSIS
Platinum may be targeting its multi-month range-top near
Platinum: Pushes Past Resistance At