In Today's analysis we would like to cover consequential fundamentals and technicals which can affect gold and silver prices in both short-term and long-term lets start the update with gold prices-At the time of writing this report gold prices are down and trading at around $1223 and silver prices are sharply lower trading at $14.22 which implies that our short-term position is going quite well in white metal while gold prices are hovering around our entry price-
we witnessed a solid rebound in the U.S stock market and a corrective upswing in crude oil prices after a huge correction it make and hit it's 13 month low-The sharp declines in crude oil prices is another factor contributing to declines in PMs-The U.S dollar index is also recovering and making a comeback which is not a good news for gold and silver bulls
most important fundamentals
-Reports suggest that due to cybersecurity risks U.S is thinking to take some harsh action for a Chinese technology firm and may even suspend this firm for future trades which implies that The U.S- China trade war has no improvement-(Many investors and portfolio managers was looking into this matter especially gold-bulls as improvement in the U.S-China trade war would have a major impact(Bullish) for precious metals sector.U.S. President Trump and Chinese President Xi are scheduled to meet face-to-face in Argentina next week
-we need to see the fed cutting or pausing the interest rates hike which will ultimately drive the precious metals prices higher but as we already know fed rate hike seems not to stop very soon-Markets are expecting fed to raise rates in December and two another rates hikes next year, however, this expectation has been cut in half as previously market expectation was four rate hikes in the next year,Negative sentiment can also be seen in futures markets as bearish speculative positioning continues to dominate the precious metals
-Manufacturing PMI released today in U.S which will not cause any strong impact as data is very light whereas crude oil prices hit 13 month low of $51.71-The U.S dollar index was higher today and it seems there is much more room for USDX to move upward from this point however Asian equities were down for the day as you know Japan markets were shut down for a public holiday-however the most important thing to note is that downfall which we witnessed in U.S Stock indexes wipes out all this year gains and that's a big deal-
-Italy said it would not accept the pressure receiving from Brussels to review its big-spending budget, however EU countries are trying to make a poll regarding Italy budget and this poll will decide whether EU authorities will punish Italy with fines or not-
Technicals-we believes buyers should be very cautious at this point as we believe 1200 level will be easily broken and there is not much support until 1180. Gold -0.07% -0.37% 0.17% 0.69% likely will not be able to support around its psychological level if the U.S Dollar keeps rising and there are numerous factors which are suggesting the future dollar strenth-The declined started in Asia-pacific trade after it went below the 100 days moving average at last week
overall it seems that position in gold -0.07% -0.37% 0.17% 0.69% and silver -0.14% -0.35% 0.49% 0.57% will be highly profitable in coming weeks-we are very bearish for the precious metal sector and we think the downfall has just been started.
our previous comment
The midterm election has been already ended which resulted in the
Democrats now controlling the house of representative, at least they got the needed majority so now they would be able to control the House of representatives,
but what about gold -0.07% -0.37% -1.22% and silver? let's come to the point
following the election the dow jones broke 26000 points, The S&P 1.25% -0.13% -0.95% had made a quite good rally while the NASDAQ was the best performer among made a net gain of about 163-167 points(approx). The US DOLLAR 0.15% 0.48% 0.27% had also made significant upward rally since the election has ended sitting over 96.50. The entire precious metals market is benefiting from dollar strength today but it's still holding onto respectable levels
our technical analysis suggests that the gold -0.07% -0.37% -1.22% has its weak support at 1221.70 where the 100-day moving average stands and $1218 which is the 0.618% retracement-however we believe these levels are very weak and once gold -0.07% -0.37% -1.22% will break below these level a free fall in gold -0.07% -0.37% -1.22% and silver -0.14% -0.35% 0.49% will follow- Gold -0.07% -0.37% -1.22% price settles below the EMA50, to keep the bearish trend suggested on the intraday basis, waiting to visit 1180.40 level as our short-term next main target
we witnessed a solid rebound in the U.S stock market and a corrective upswing in crude oil prices after a huge correction it make and hit it's 13 month low-The sharp declines in crude oil prices is another factor contributing to declines in PMs-The U.S dollar index is also recovering and making a comeback which is not a good news for gold and silver bulls
most important fundamentals
-Reports suggest that due to cybersecurity risks U.S is thinking to take some harsh action for a Chinese technology firm and may even suspend this firm for future trades which implies that The U.S- China trade war has no improvement-(Many investors and portfolio managers was looking into this matter especially gold-bulls as improvement in the U.S-China trade war would have a major impact(Bullish) for precious metals sector.U.S. President Trump and Chinese President Xi are scheduled to meet face-to-face in Argentina next week
-we need to see the fed cutting or pausing the interest rates hike which will ultimately drive the precious metals prices higher but as we already know fed rate hike seems not to stop very soon-Markets are expecting fed to raise rates in December and two another rates hikes next year, however, this expectation has been cut in half as previously market expectation was four rate hikes in the next year,Negative sentiment can also be seen in futures markets as bearish speculative positioning continues to dominate the precious metals
-Manufacturing PMI released today in U.S which will not cause any strong impact as data is very light whereas crude oil prices hit 13 month low of $51.71-The U.S dollar index was higher today and it seems there is much more room for USDX to move upward from this point however Asian equities were down for the day as you know Japan markets were shut down for a public holiday-however the most important thing to note is that downfall which we witnessed in U.S Stock indexes wipes out all this year gains and that's a big deal-
-Italy said it would not accept the pressure receiving from Brussels to review its big-spending budget, however EU countries are trying to make a poll regarding Italy budget and this poll will decide whether EU authorities will punish Italy with fines or not-
Technicals-we believes buyers should be very cautious at this point as we believe 1200 level will be easily broken and there is not much support until 1180. Gold -0.07% -0.37% 0.17% 0.69% likely will not be able to support around its psychological level if the U.S Dollar keeps rising and there are numerous factors which are suggesting the future dollar strenth-The declined started in Asia-pacific trade after it went below the 100 days moving average at last week
overall it seems that position in gold -0.07% -0.37% 0.17% 0.69% and silver -0.14% -0.35% 0.49% 0.57% will be highly profitable in coming weeks-we are very bearish for the precious metal sector and we think the downfall has just been started.
our previous comment
The midterm election has been already ended which resulted in the
Democrats now controlling the house of representative, at least they got the needed majority so now they would be able to control the House of representatives,
but what about gold -0.07% -0.37% -1.22% and silver? let's come to the point
following the election the dow jones broke 26000 points, The S&P 1.25% -0.13% -0.95% had made a quite good rally while the NASDAQ was the best performer among made a net gain of about 163-167 points(approx). The US DOLLAR 0.15% 0.48% 0.27% had also made significant upward rally since the election has ended sitting over 96.50. The entire precious metals market is benefiting from dollar strength today but it's still holding onto respectable levels
our technical analysis suggests that the gold -0.07% -0.37% -1.22% has its weak support at 1221.70 where the 100-day moving average stands and $1218 which is the 0.618% retracement-however we believe these levels are very weak and once gold -0.07% -0.37% -1.22% will break below these level a free fall in gold -0.07% -0.37% -1.22% and silver -0.14% -0.35% 0.49% will follow- Gold -0.07% -0.37% -1.22% price settles below the EMA50, to keep the bearish trend suggested on the intraday basis, waiting to visit 1180.40 level as our short-term next main target
