Commodity Market Outlook
Gold prices slipped on Friday in Asia as traders awaited more trade news. While an intensifying trade dispute between the U.S. and China have sent most risk assets down this month, the safe-haven gold has not been able to benefit as much as traders hoped as markets have seemingly preferred the U.S. dollar amid the trade war. Gold is now down nearly 5% since touching a 10-month peak in February at $1,346.73. Gold prices recorded the largest percentage gain in a week on Thursday, but analysts said it might have trouble hitting the psychologically important $1,300 level.
Oil prices rebounded on Friday in Asia after settling down almost 6% the previous session amid another surprisingly strong increase in U.S. stockpiles last week. U.S. crude inventories rose to hit the highest since July 2017, suggesting ample supplies in the world’s top consumer. Meanwhile, worries that the U.S.-China trade is developing into a more entrenched dispute have also hit prices. Brent crude, the global benchmark, rose 85 cents to $68.61 a barrel at 0857 GMT. It was still set for a decline of more than 5% this week. U.S. West Texas Intermediate crude added 75 cents at $58.66.
- Gold prices slip as traders await more trade news
- Oil prices rebound after worst trading day in 2019
- Dollar slips as weak data boosts U.S. rate cut bets
- EUR/USD touches 1.12 as dollar weakness extends into the new day
GOLD rebounded sharply in the previous session from its long term trend line support and closed at $1287 level. It is moving lower in today’s session as it faces resistance at the higher levels. It is likely to trade range bound in the short term. At the lower side it may find good support near $1279 while the higher side may be capped at $1288 level.
SILVER prices too bounced up in the previous session along with the gold prices amid weakness in the U.S. dollar. It closed above $14.50 level and currently trading near this level. It is likely to trade positive for the day and move further up in the coming week. At the downside it has got good support at $14.46 which may halt any slide in the prices.
CRUDE oil fell sharply in the last session and moved below its crucial $60 level. The sharp decline in the prices indicates strong bearishness which may drive it further down in the near future. It is likely to test its immediate support at $57.90 and a break below this level may take it further down.
COPPER prices closed in green in the last session after falling in the last couple of sessions. It is trading slightly up in today’s session. However this bounce in the prices may be limited as it continues to move in a downtrend. It faces strong resistance near $2.7100 level which may capped its rise.