Equities fell globally on Friday as oil trades lowered, ending six consecutive days of rallying.
Stocks retraced globally as oil runs out of steam
Optimism is now fading as expectations have been priced in too early of a possible output freeze by OPEC members, in their meeting in September.
WTI crude oil October contract closed at US$48.77 after hitting a key resistance level at US$49.00 on on Friday. The immediate support level can be found at around US$45.88 while the next resistance level is near the US$52.77 area.
The Dollar Index rebounded from a six-week low, as euro and sterling weakened against the greenback on Friday. The stronger dollar is likely to weigh on commodities prices, especially crude oil, gold and silver in the near term.
Dollar index rebounds, gold and silver fall
The Dollar index rebounded from a two-month low as the market awaits Fed Chairwoman Janet Yellen’s speech in Jackson Hole this Friday. Although the recent FOMC meeting minutes reveal very little about the timing of the next interest hike, some market participants are now expecting Yellen to deliver a stronger signal about the likelihood of a near-term rate hike given two months of strong employment gains.
A stronger dollar weighs on commodities prices, with silver prices dropped to a six-week low of US$ 19.03 while gold retraced to the US$1,338 area.
Euro, sterling and the yen continued to slide against the US dollar this morning. EUR/USD fell from a four-week high to the 1.1295 area.
Silver - Cash
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Margaret Yang Yan