Sometimes it feels like this consolidation period in gold and silver is not going to over for months but trust me we have seen this kind of range bound movement in precious metal sector numerous times and then we witness an explosive breakout or breakdown in both of the precious metals? but there is no denying that we are in the middle of the boring times but we are expecting it to end very soon but the question is will this time we'll see an explosive breakout or breakdown in PMs?
However, Every analyst have their own idea about the same market while most of the analyst are either neutral or significantly bullish for the current market condition in precious metals sector but for us market is saying only one thing- Don’t get tricked by a false move
we witnessed gold to drop below $1214 level on Oct 31 which we believe was caused by the fund selling to take some profits for client statement purposes to recover some losses in the stock market-
Gold price tested 1227.00 level without managing to break it, waiting to surpass this level to reinforce the expectations of continuing the decline towards our main waited target at 1208.40, to keep our bearish trend scenario valid for today
USDX has also formed inverse head and shoulder pattern about which we informed you already-The breakout is already confirmed by numbers of daily closing candles and there are numerous sign pinpointing to the upcoming US dollar rally which is negatively correlated to the PMs sector but what's interesting is even the good economic numbers on Friday which helped to strengthen the dollar, didn't push gold and silver prices above,The market is likely to quiet ahead of the U.S midterm election and people are waiting to see how it's going to play out after tomorrow however opinion polls show strong chances that the democratic may win this midterm election by which we can expect a pressure in dollar and a slight move higher PM sector However we believe once this matter of election between Democrats and Republican will over this inverse correlation be back to normal which will help drive gold and silver prices to fall in a significant manner-
patience will reward us
please note- Hedge funds and money managers raised their net short position in gold to a three-week high in the week ended Oct. 30, according to U.S. Commodity Futures Trading Commission data.
However, Every analyst have their own idea about the same market while most of the analyst are either neutral or significantly bullish for the current market condition in precious metals sector but for us market is saying only one thing- Don’t get tricked by a false move
we witnessed gold to drop below $1214 level on Oct 31 which we believe was caused by the fund selling to take some profits for client statement purposes to recover some losses in the stock market-
Gold price tested 1227.00 level without managing to break it, waiting to surpass this level to reinforce the expectations of continuing the decline towards our main waited target at 1208.40, to keep our bearish trend scenario valid for today
USDX has also formed inverse head and shoulder pattern about which we informed you already-The breakout is already confirmed by numbers of daily closing candles and there are numerous sign pinpointing to the upcoming US dollar rally which is negatively correlated to the PMs sector but what's interesting is even the good economic numbers on Friday which helped to strengthen the dollar, didn't push gold and silver prices above,The market is likely to quiet ahead of the U.S midterm election and people are waiting to see how it's going to play out after tomorrow however opinion polls show strong chances that the democratic may win this midterm election by which we can expect a pressure in dollar and a slight move higher PM sector However we believe once this matter of election between Democrats and Republican will over this inverse correlation be back to normal which will help drive gold and silver prices to fall in a significant manner-
patience will reward us
please note- Hedge funds and money managers raised their net short position in gold to a three-week high in the week ended Oct. 30, according to U.S. Commodity Futures Trading Commission data.
