we witnessed the equity market correction in previous months where analysts were fearful of coming next financial crisis as we saw in 2008 or even bigger than that but our study suggests that despite the equity market correction investors and long-term traders aren't interested in the precious metal sector because they aren't afraid of a bear equity market. The non- fear factor can be seen in the financial market stress index published by the St Louis Federal Reserve and the CBOE Volatility Index ($VIX), also known as the fear gauge-as of now we are seeing the USD Dollar index has jumped to its highest level since June 2017 which is making immense pressure on both gold and silver and our short-term analysis suggest that once yellow metal will broke below $1190 level(our take profit) more selling pressure will start from this point-we as a gold and silver analyst are focusing more on the U.S. dollar, positioning analysis and global macro data these are the factors that could affect gold and silver prices in the long term-some other important factors which are making pressure on P.Ms are WTI crude oil significant decline along with weak CNY and rising yields-
Please note-Russia and Saudi are about to cut their oil export and we believe at this moment of time investors should monitor any outcoming global macro data very carefully
Our previous comment
1-we believe after the US mid-term election when the dust will be settled, the recent news events and relatively strong earning data will push the US stock market and economy to upside in a significant manner
2-If US-CHINA Trade war will be eased through the losing the policy by trump in the near future, we expect the equity market to surge 5-10% over a few weeks or even in few days on that news alone, hence a significant downfall in the precious metals sector.
3-we strongly believe experienced money managers and strategic professional trader should tight their seat belts and should start taking trades in gold 0.18% -0.31% and silver -0.21% 0.00% as we are expecting a sharp move as the price could move in a very aggressive manner soon-However we are very bearish for the mid and long-term in the precious metals sector.
Please note-Russia and Saudi are about to cut their oil export and we believe at this moment of time investors should monitor any outcoming global macro data very carefully
Our previous comment
1-we believe after the US mid-term election when the dust will be settled, the recent news events and relatively strong earning data will push the US stock market and economy to upside in a significant manner
2-If US-CHINA Trade war will be eased through the losing the policy by trump in the near future, we expect the equity market to surge 5-10% over a few weeks or even in few days on that news alone, hence a significant downfall in the precious metals sector.
3-we strongly believe experienced money managers and strategic professional trader should tight their seat belts and should start taking trades in gold 0.18% -0.31% and silver -0.21% 0.00% as we are expecting a sharp move as the price could move in a very aggressive manner soon-However we are very bearish for the mid and long-term in the precious metals sector.