As summer transitions into Autumn, there seems to be little change in the sentiment for gold, which continues to remain rangebound on the daily chart, still transfixed within the Brexit candle of late June.
The dollar’s laborious consolidative days seem to be numbered from both the technical and fundamental points of view.
Yesterday was, once again, another negative day for silver, which continued lower for a fourth consecutive session, opening gapped down from Friday’s close before ending at $19.00 per ounce.
The dollar staged a broad-based rally on Thursday to make back some of the losses it had suffered earlier in the week which had been on the back of a poor ISM services PMI reading and last week’s disappointing jobs report.
Over the past week and a half, crude oil prices have been on a rollercoaster ride. Within the large ranges, the force of gravity has generally worked against bullish speculators after the 3-week rally ended in mid-August when Brent hit $51 and WTI reached $49 a barrel again.
Oil prices swung wildly into the positive territory yesterday. The rally eventually came to a halt around the $50 handle for Brent and $48 for WTI, and both contracts have been trending lower from these levels until an hour or so ago.
The longer term recovery for oil which peaked in the $52 per barrel area last month, is now reversing once more and picking up bearish momentum ahead of the weekly oil inventories due for release later today, as both the technical and fundamental picture help to drive prices lower once again.
The International Monetary Fund (IMF) on Monday announced its board decision to amend the rounding methodology for determining currency accounts in the Special Drawing Right (SDR) basket, in order to make technical preparations for the inclusion of the Chinese currency, Renminbi, in the SDR basket.
Whilst many commodities reacted strongly to the US employment data on Friday, with a consequent surge higher on US dollar weakness,
The EURUSD pair went back and forth during the course of the day on Monday, showing quite a bit of confusion at the 1.14 handle which of course is the beginning of massive resistance.
