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Talking Points
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Gold and Silver Reclaim Lost Ground As The US Dollar Falters
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Copper And Crude Oil Bolstered By Chinese Manufacturing Beat
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Platinum Eyeing The 1,314 Floor Following A Slide Under 1,360
The precious metals have managed to recover some lost ground in Asian trading today as their pricing currency the US Dollar falters. Manufacturing PMI figures from the world’s largest economy due over the session ahead may offer the greenback some guidance. The leading indicator is tipped to climb to the highest on record. This in turn may firm Fed policy normalization bets and reinvigorate the USD bulls, which in turn could renew pressure on gold and silver.
Meanwhile, crude oil and copper have been bolstered by a better-than-anticipated September HSBC China Flash Manufacturing PMI reading released today. The lift in the gauge of manufacturing sector activity may have alleviated concerns over a waning appetite for commodities from the Asian Giant. A strong US PMI figure later in the session would offer a positive signal for global demand for growth-sensitive commodities. Yet a recovery for crude may prove difficult given the lingering worries over a supply glut.
ECONOMIC DATA
Source:DailyFX Economic Calendar, Times In GMT
MARKET MOVEMENTS (MONDAY 22, CLOSE: 5PM EST)
| Energy | Open | High | Low | Close | $ Chg. | % Chg |
| US Oil | 91.7 | 91.89 | 90.39 | 90.70 | (1.00) | -1.09% |
| UK Oil | 98.36 | 98.36 | 96.38 | 96.86 | (1.50) | -1.53% |
| Metals | Open | High | Low | Close | $ Chg. | % Chg |
| Gold | 1,214.80 | 1,220.32 | 1,207.88 | 1,214.75 | (0.05) | 0.00% |
| Silver | 17.81 | 17.86 | 17.32 | 17.73 | (0.08) | -0.43% |
| Palladium | 809.8 | 814.5 | 798.3 | 798.4 | (11.40) | -1.41% |
| Platinum | 1,334.20 | 1,336.70 | 1,323.50 | 1,324.30 | (9.90) | -0.74% |
| Copper | 3.087 | 3.087 | 3.03 | 3.04 | (0.05) | -1.52% |
CRUDE OIL TECHNICAL ANALYSIS
Crude is once again at a critical juncture as it teases at a push below the 90.20 barrier. Against a broader bearish backdrop a daily close below the noteworthy level would be seen as a fresh selling opportunity. This would pave the way for the next leg lower to the 2013 lows near 85.45. At this stage reversal signals appear lacking, which casts some doubt on the potential for a recovery.
Crude Oil: Revisits 2014 Lows
Daily Chart - Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS
Downside risks remain for gold while sub the 1,222 barrier. A Doji indicates some hesitation from traders to lead the precious metal lower. Yet the absence of classic reversal candlesticks lowers the likelihood of a corrective bounce at this stage. This keeps the spotlight on the 2013 lows near 1,180.