Commodities advance as greenback consolidates on Friday

Precious metals and oil were trading higher on Friday as the US dollar was seen flat, moving nowhere today.Gold advanced back above 1,780 US and silver managed to defend the 23 USD.

Oil was also trading higher today, its first day of gains after six days of consecutive losses. 

However, the medium-term outlook for oil does not look very positive as the black gold dropped below the key support of 65 USD. As long as it stays below it, bears could dominate. 

The UK calendar offered retail sales from the country, which dropped 2.5% on the month in July, a sharp slowdown from the 0.5% growth in June. The pound was slightly lower after the data, falling toward 1.36.

Later in the day, Canadian retail sales data are due, most likely moving the USDCAD pair. As both the USD strengthened and oil fell notably, the USDCAD pair surged to 1.29, the level last seen in December 2020.

From other news, US stock indices managed to erase their sharp losses yesterday and the SP500 and Nasdaq closed in positive territory. That could lead to further gains, although, volatility will most likely stay elevated after the Wednesday’s FOMC minutes hawkish surprise.

Source: https://www.axiory.com/market-news/commodities-advance-as-greenback-consolidates-on-friday