Market sentiment analysis:
- Trader confidence remains high in gold[1], silver[2] and other metals, suggesting further gains for XAU/USD[3], XAG/USD and XPT/USD once the recent bout of profit-taking is over.
- Meanwhile, the US Dollar[4] (DXY) continues to slide, bolstering metal prices.
Traders still confident about gold, silver, platinum, copper and iron ore
Traders remain confident of further gains in precious metals such as gold, silver and platinum, as well as base metals like copper[5] and iron ore, suggesting that their prices could yet move higher still despite some profit-taking after gold reached a record high and silver a seven-year high.
US Gold Price Chart, Daily Timeframe (January 1 – July 28, 2020)
Chart by IG (You can click on it for a larger image)
Meanwhile, the US Dollar (DXY) continues to slide, adding to the attraction of the precious and base metals.
In this webinar, I looked at the trends in the major currency, commodity and stock markets, at the forward-looking data on the economic calendar[6] this week, at the IG Client Sentiment page[7] on the DailyFX website[8], and at the IG Client Sentiment reports[9] that accompany it. You might also like to check out the DailyFX Trading Global Markets Decoded[10] podcasts.
Find out here how to use sentiment data when trading[11]
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me on Twitter @MartinSEssex
DailyFX[12] provides forex news and technical analysis on the trends that influence the global currency markets.
