Precious Metals Bounce, Copper & Oil Retain Losses

MCX Aug Natural Gas was tested a valid tend-line resistance at 185 and turned the direction by forming a “bearish engulfing” candlestick pattern on daily charts. Now the bias turned on downside and is likely to drag the prices further down towards 177 & 174.5 levels. Precious metals bounced following the previous drop during the current trading session. Copper was not as lucky, retaining its losses. The reason for the bounce was the weakness of the dollar after a couple of negative economic reports were released from the United States. Of particular note was the data that showed weakest wage growth since 1982. Metals often trade inversely to the greenback, meaning that news that is negative for the US currency is positive for the metal market. December futures for delivery of gold gained 0.44 percent to $1,093.20 per troy ounce as of  GMT on COMEX today. September contract for silver advanced 0.74 percent to $14.81 per ounce. At the same time, copper declined 0.23 percent to $2.3715 per pound.Crude oil, on the other hand, maintained its decline, falling more than 1 percent during Friday’s trading. It looks like concerns about oversupply on the market are not going to allow the commodity to benefit from the dollar’s weakness. Contract for delivery of WTI crude oil in September slid as much as 1.65 percent on NYMEX today. Brent crude lost 1.11 percent to $52.72 per barrel on ICE.