We are about to witness a significant fall in precious metal

OANDA:XAUUSD   Gold Spot / U.S. Dollar

Before starting our daily report we would like to inform you that right now three positions are currently active in our portfolio including yesterday's silver trade where we entered a short position at $15.50 and two positing for the yellow metal one for the short term and other for the long term. Gold and silver prices are trading lower today as we have seen a firmer DXY on this day which helped to put pressure on P. Ms .There is no doubt that market participants are worried about slowing global economic growth especially after The 10-year U.S. Treasury yield fell further, having fallen below the yield for three-month bills on Friday for the first time since 2007, inverting the yield curve. An inversion is widely seen as indicating an economic recession.we have also witnessed German government auctioned it's 10-year note today and the reported yield was -0.05%, we saw the first negative yield by German government bonds since 2016. However, it's also important to keep in mind that Yield curve inversion isn't the best sign of a looming recession because while inversion is an indication of troubled credit markets, it isn't a timing tool. Stocks can rise-and the economy grow-for many months while the curve is inverted.

Today's Report-
At the time of publishing this report gold is trading at $1291 while the white metal is still hovering around 15.100. silver is known as a proxy for gold however acts much volatile compared to the yellow metal as a result silver fell to a three month low while gold prices hit a three weak low today however you would also need to keep in mind that the significant rally which we have witnessed in gold didn't help the white metal prices in a profound manner and as a consequence we are seeing a significant underperformance silver .The U.S equity market are making solid gains along with the Asian and European stock indexes which obviously not a good news for the precious metals bulls.The Royal Bank of Australia have already stated that there economy is suffering from mild to low inflation and to be able to get out of this problematic inflation may take some time.The bulls need to show some power soon in order avoid more serious chart damage.

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