By Lukman Otunuga, Research Analyst, ForexTime
It has been a lackluster trading week for Gold despite geopolitical tensions, Brexit developments and central bank policy meetings influencing global risk sentiment.
The precious metal continues to trade within a certain range, with $1500 acting as a pivotal psychological point. Given how optimism is mounting ahead of high-level US-China trade talks in October, the precious metal could continue drifting sideways until a fresh directional catalyst is brought into the picture.
Looking at the longer term, Gold should find ample support from global growth concerns and lower interest rates across the world. In regards to the technical picture, prices have scope to attack $1525 if $1500 proves to be a reliable support.
Get our Weekly Commitment of Traders Report: - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Oil prices consolidate into the weekend
What goes up must come down. This was the story defining oil prices after initially exploding 20% higher at the start of the week before surrendering almost half of the gains mid-week.
Concerns over negative supply shocks jumped after Saudi Arabia experienced a major disruption of 5.7 million barrels per day, roughly 5% of global supplies. Although fears around supply disruptions later eased after Saudi Arabia pledged to restore Oil output fully by the end of September, the commodity still remains exposed to geopolitical risks.
Any signs of escalating tensions in the Middle East have the potential to push Oil higher. Looking at the technical picture, WTI Oil could rebound higher towards $60 if $58 acts as a reliable support level.
Silver trades within tight range
This was a week of consolidation for Silver as prices traded within a 50 cent range. Given how the precious metal remains correlated with Gold, prices are seen trading sideways until a fresh driver excites bulls or bears.
Focusing on the technical picture, Silver is seen trading higher if $18.00 is conquered on the weekly timeframe. Should this point act as a gatekeeper and prevent further upside, then the next key point of interest for Silver will be $17.40 which remains a stubborn support.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.
Article by ForexTime
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com