Wednesday, 9 Sep 2009

Precious Metals Stable; CAD Sentiment Negative

Commodity prices seem to have calmed down after yesterday's spike. Dollar sentiment remains down, however, and many investors are showing signs of distress over possible inflationary growth. These signals all indicate that the upward trend may not yet be over for precious metals and Crude Oil, since these commodities tend to act as a safe-haven from inflationary fears.

Some analysts have stated that if Gold prices can remain stable above $1000 an ounce, there is a possibility that they will eventually climb as high as $1100 over the next 1-2 months.

In other news, CAD sentiment remained negative going into the 12:15 GMT release of the Canadian Housing Starts report. After yesterday's Canadian Building Permits report showed a declining housing market in Canada, the Loonie ended up being the first currency to actually lose strength against the plummeting USD. Following the better than forecasted results of today's release, the CAD remained largely unchanged, with hints at future bullishness.

Silver Correction Imminent

Attention Traders, there seems to be some very interesting technical analysis for the Silver 1-day chart that I recommend you read now. The following chart signals that the upward trend of the pair may be coming to an end, and that a bearish reversal is imminent. Point 1: The Relative Strength Index (RSI) signals that the price of the pair floats in the overbought territory, indicating downward pressure. Point 2: The Stochastic Slow show a bearish cross has recently occurred, and that a downward reversal is looming.