Fundamentals, Oil & Gold

Oil, Metals Look to US Jobs Report to Set Trajectory

Commodities – Energy

All Eyes on the US Jobs Report as Crude Hovers Near $80

Crude Oil (WTI)       $79.96        +$0.34        +0.43%
Technically speaking, oil positioning is largely unchanged from yesterday: prices are hovering just below the psychologically significant $80/barrel level, with negative divergence on the RSI oscillator hinting at a bearish bias; initial support at $78.28. Fundamentally, all eyes will be on the US jobs report, with expectations suggesting that the world’s largest consumer market shed -175K jobs, the smallest decline in 14 months. The Baker Hughes measure of rigs operating in the US will be of secondary importance and is likely to be negligible by comparison to the NFP release.

Commodities – Metals

Metals Unchanged From Yesterday, Waiting for NFP to Set Direction

Gold       $1091.43       +$1.13       +0.10%
As with oil, gold positioning is little changed from yesterday: prices are re-testing resistance-turned-support at the top of a previously broken rising channel top and negative RSI divergence argues for a bearish bias; a break below current support opens the door for a test of the channel’s bottom below $1080. Fundamentally, the NFP report is the only attention-worthy item on the docket.

Silver       $17.48        +$0.08        +0.43%
Silver continues to consolidate below $17.50, with trading ranges narrowing ahead of tomorrow’s Nonfarm Payrolls release that is set to determine the trajectory for risky assets, the US Dollar, and precious metals.