Meanwhile, WTI oil is moving higher as the rebound continues.
Most global markets are under strong pressure today, and traders rush to the safety of the U.S. dollar. This environment is bearish for most commodities, although WTI oil is trying to continue its rebound from recent lows.
Silver gained strong downside momentum and is trying to settle below the $19.00 level amid recession worries and strong dollar.
Demand for silver has a significant industrial component, so silver is sensitive to changes in the economic outlook. Strong dollar is bearish for dollar-denominated commodities.
In addition, Treasury yields are moving higher at a robust pace. The yield of 10-year Treasuries is currently trying to settle above the 3.00% level. In case this attempt is successful, the yield of 10-year Treasuries will gain additional upside momentum and move towards the resistance at 3.10%, which will be bearish for silver.
Platinum is also under significant pressure today. Platinum has recently managed to get below the $900 level and is testing the support level at $880. In case this test is successful, platinum will move towards the next support level at $860.
From a big picture point of view, platinum remains in a downside trend. At this point, it looks unlikely that platinum would be able to break this trend in case Treasury yields and the U.S. dollar continue to move higher.
Today, WTI oil traders ignored strong dollar and recession risks. Instead, they focused on the absence of news from Iran. The fate of the Iran nuclear deal will be the key driver for oil prices in the upcoming weeks.
It remains to be seen whether WTI oil will be able to gain significant upside momentum ahead of the weekend amid global market sell-off. Some traders are ready to buy oil after the strong pullback, but oil markets will likely need additional catalysts to break the current downside trend which emerged in June.
For a look at all of today’s economic events, check out our economic calendar.
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.