Commodity momentum: Gold turns negative while silver slows

Gold lost further support overnight and traded down to 1697, following a break below 1705 support. Buyers have now returned and helped stabilize the yellow metal, which continues to trade nervously, with traders in doubt what the current drivers are, as a weaker dollar and a general friendly investment environment have failed to support. Silver, which has done relatively better recently, is also slowing but still a few days away from going negative on momentum.

Elsewhere no major momentum changes has been observed since yesterday, apart from wheat. Positive momentum on Paris Milling Wheat is slowing while negative momentum on CBOT Wheat is accelerating following the sell-off witnessed during the last few days.