Gold and silver prices are constantly being hammered by the bears while bulls keep trying to stop the bleeding in the precious metal market without any luck so far. The precious metal market has been dipped to there nine-week lows. At the time of publishing, this gold is trading at $1284 per ounce while the white metal is still hovering around its psychological resistance which is at $15 however as we are writing the psychological resistance has broken just yet which can easily drag the prices to $14.50 or even $14.00 in the short term. The long term picture is even more bearish than you might think.
The recent comments from a U.S trade official have disappointed investors and traders however most analysts are predicting U.S-China trade dispute to settle soon which will ultimately encourage more investors to dive in at risky assets which indicates more bearish sign for the entire precious metal sector. The China-Trade war has caused more trouble to Chinese economy than USA Which is making Chinese leadership keen to end its trade war with the U.S The unofficial China purchasing managers’ index (PMI) came in at its lowest level since October. China has also reduced it's projected to gross domestic product growth for the year. As China is a major consumer for gold, there slowing Chinese economy is a good sign for bears.
Today's European Central Bank monetary policy meeting announcement surprised many investors when ECB announced that they would not change interest rates in 2019 but will provide more funds to there banks in order to stimulate more lending. most investors didn't expect ECB to change their interest rates however providing more liquidity part was definitely surprising as the consequence DXY moved to it's daily high while the EURO currency dropped on the news.we also witnessed the lower equity market for Asian and European part along with with the U.S stock indexes. The U.S. jobs report from the Labor Department which is The most important U.S. economic data of the month is scheduled to release on Friday
The Technical damage in gold and silver chart has already been done as the metal has corrected more than $50 from last month’s highs, many analysts are looking at long-term support at $1,275, which represents a key retracement level in gold’s recent rally. minor corrections should be expected from these levels which could take the price up to $1300 however we'll add more capital to this trade once yellow metal will break below $1270 level as a close below from this level will open the door to more selling.
It seems a “do-or-die” week for the gold and silver market bulls has been ended where they have landed on the die part. our anticipation for the minor correction in the yellow metal has faded and it seems more technical damage will be inflicted in the chart soon however we are still waiting to check the weekly closing prices for more confirmation.we'll add more capital to this trade once yellow metal will break below $1270 level as a close below from this level will open the door to more selling.
The recent comments from a U.S trade official have disappointed investors and traders however most analysts are predicting U.S-China trade dispute to settle soon which will ultimately encourage more investors to dive in at risky assets which indicates more bearish sign for the entire precious metal sector. The China-Trade war has caused more trouble to Chinese economy than USA Which is making Chinese leadership keen to end its trade war with the U.S The unofficial China purchasing managers’ index (PMI) came in at its lowest level since October. China has also reduced it's projected to gross domestic product growth for the year. As China is a major consumer for gold, there slowing Chinese economy is a good sign for bears.
Today's European Central Bank monetary policy meeting announcement surprised many investors when ECB announced that they would not change interest rates in 2019 but will provide more funds to there banks in order to stimulate more lending. most investors didn't expect ECB to change their interest rates however providing more liquidity part was definitely surprising as the consequence DXY moved to it's daily high while the EURO currency dropped on the news.we also witnessed the lower equity market for Asian and European part along with with the U.S stock indexes. The U.S. jobs report from the Labor Department which is The most important U.S. economic data of the month is scheduled to release on Friday
The Technical damage in gold and silver chart has already been done as the metal has corrected more than $50 from last month’s highs, many analysts are looking at long-term support at $1,275, which represents a key retracement level in gold’s recent rally. minor corrections should be expected from these levels which could take the price up to $1300 however we'll add more capital to this trade once yellow metal will break below $1270 level as a close below from this level will open the door to more selling.
It seems a “do-or-die” week for the gold and silver market bulls has been ended where they have landed on the die part. our anticipation for the minor correction in the yellow metal has faded and it seems more technical damage will be inflicted in the chart soon however we are still waiting to check the weekly closing prices for more confirmation.we'll add more capital to this trade once yellow metal will break below $1270 level as a close below from this level will open the door to more selling.
