The precious metal market is having a significant impact as chart-based selling is getting stronger which already drag the yellow metal prices to $1283 however silver is trading at $15.06 at the time of writing this report. The levels at which both precious metals are trading may act as support levels at least in the short term. The white metal still needs to break below its psychological resistance which sits at $15.A rebound in the U.S.dollar index just recently is also a negative outside-market force working against the precious metals market bulls.
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.
Technically gold and silver bulls are oversold as silver is also approaching to its psychological resistance. we won't be surprised if the correction will take the yellow metal prices to $1290 or even $1300.First support is seen at the January low of $1,281.50 and then at $1,275.00.
Currently, we have only one position dedicated to gold in our portfolio as the position is lucrative based on the risk and reward perspective, we are still waiting for silver to rebound at least to $15.50 for getting in the trade. Our decision to cancel our short trade in silver proved to be wrong however limiting our exposure or risk were also crucial at that point. we will also increase the size of our position once yellow metal will break below key support levels - our position has the full potential to add enormous gain in our portfolio, we are not adding silver position yet.it’s a “do-or-die” week for the gold and silver market bulls. They need to step up and show good power this week, to avoid more serious technical damage being inflicted.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.
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.
Technically gold and silver bulls are oversold as silver is also approaching to its psychological resistance. we won't be surprised if the correction will take the yellow metal prices to $1290 or even $1300.First support is seen at the January low of $1,281.50 and then at $1,275.00.
Currently, we have only one position dedicated to gold in our portfolio as the position is lucrative based on the risk and reward perspective, we are still waiting for silver to rebound at least to $15.50 for getting in the trade. Our decision to cancel our short trade in silver proved to be wrong however limiting our exposure or risk were also crucial at that point. we will also increase the size of our position once yellow metal will break below key support levels - our position has the full potential to add enormous gain in our portfolio, we are not adding silver position yet.it’s a “do-or-die” week for the gold and silver market bulls. They need to step up and show good power this week, to avoid more serious technical damage being inflicted.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.
