Our Silver second target will hit sooner than you think

OANDA:XAGUSD   Silver / U.S. Dollar
Previous Update-We have taken all the profit($2000) out of the table from our silver position however keep in mind we are still heavily bearish for the precious metal sector, and we would open more short position in silver once market will present us another opportunity, Be prepared.

our long term macro Report-

Existing positions:

Asset: XAUUSD ( GOLD )

Buy Stop Entry Price:1520

Take Profit: 1580

Stop Loss:1490(we will reduce the stop loss points once positions will be more favorable)

Risk/Reward: 1:2

(we can adjust (limit, close or even reverse) the position before this price level(T.P) is reached)


BUY Stop Entry Price:18.00

Take Profit: 19.00

Stop Loss:17.00(we will reduce the stop loss points once positions will be more favorable)

Risk/Reward: 1:1

(we can adjust (limit, close or even reverse) the position before this price level(T.P) is reached)

At the time of publishing, this report gold is trading at $1523 per ounce and the white metal is hovering around $18.60. Gold is waiting for a new catalyst and Saudi Arabia’s response to last week’s drone strikes could reignite gold’s price higher(not significant) from the level it's currently trading at. The yellow metal is holding steady above the $1,500 an ounce level with prices rising around 1.38% on a weekly basis. The Last week began with the markets’ reaction to the September 14 strikes on Saudi Arabia’s Khurais and Abqaiq oil facilities. Washington and Riyadh blamed Iran for the attacks, with Iran denying any involvement.

The big thing this week is getting some clarity on what the Saudi response is going to be to oil attacks last weekend. That is going to be a key driver for not just the oil market, but the rest of commodity prices,”. “Any sign of escalation in tensions or retaliation would be positive for the gold price. We’d expect some safe-haven buying if that was the case. The U.S. proceeded to respond on Friday by imposing a new round of sanctions on Iran, including the country’s central bank . “Iran’s brazen attack against Saudi Arabia is unacceptable,” U.S. Treasury Secretary Steven Mnuchin said in a statement that announced the sanctions. What the Saudi Arabia response will be to the drone strikes last week. That is still the great unknown which could have the potential effect on gold prices however One of the little headwinds for gold is industrial data started to look a little better and we are past the bottom for the global industrial cycle.

Another key driver for gold markets digesting the growing dissension within the Federal Reserve . On Wednesday, the Fed cut rates by 25 basis points to a level of between 1.75% and 2.0%, while sounding slightly more hawkish than anticipated by the markets. The central bank is not expecting to cut rates in 2019 or 2020 while stressing that each rate decision will be increasingly data-depended. Despite the somewhat hawkish outlook, there is a growing divide between the Fed members. Breaking down the latest Fed rate cut reveals that three regional presidents voted “no” but for different reasons. Two wanted to see no change in rates, while a third wanted an even bigger cut.

Keep in mind-Markets are likely to still be disappointed by the Fed as investors’ and traders expectations are still too dovish

Summary-As long as gold continues to trade above $1,500 an ounce, analysts will remain bullish however breaking below $1470-$1475 level could be a massive trigger for selling and on the upside A break above $1520-$1,530 will reinvigorate the bullish trend . We don’t see much(significant) upside. As far as we are concerned, the market is still pricing in too much Fed easing. There could be some disappointments on that front. Macro data this week could be the next major catalyst for gold . CB consumer confidence is on Tuesday. Also, we are looking at the core PCE , pending home sales, personal income , and durable goods—. “The PCE monthly figure for August is important — that will tell us how the inflation is unfolding in the U.S. Any negative prints or sub expectations will likely help gold here.”

The second-quarter GDP print will also be released on Friday. Other data out this includes manufacturing PMI, house price index, and new home sales data

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