Gold & Silver dumped as USD rallies
|There were some big movers in the overnight trading action, in all key asset’s groups; FX, Stocks & Commodities.
The USD rallied on the back of renewed faith & optimism that phase 1 of a US/China trade deal can me made, with rolling back of tariffs a key headline driver of sentiment.
Risk assets liked the tone set by the latest round of news surrounding the trade progress and the positive nature of the likelihood of the scaling bac k of trade tariffs.
- The GBP took a hit against all FX counterparts because the Bank of England vote switched from 9 to 0 in favour of holding UK interest rates, to 7 to 2, with 2 MPC (Monetary Policy Committee) members voting for a rate cut.
EUR/GBP spiked from 85.90 to 86.60 before reversing gears.
- USDJPY rallied, the USD denominated commodities slammed lower (Gold & Silver in particular), and meanwhile, the SP500 surged on higher.
We really are set to see this trend continue – so I maintain my calls:
- $1,380 call for Gold
- Higher highs ahead for US equities
- SP500 towards 3200
- AUD/USD to 70c
- USD/JPY to run to 110.00.
Meanwhile, Silver slapped back to $17 in a big percentage daily move led by USD being bid higher.
Levels to watch on Silver:
- Technically the $17 level holds as a solid base.
- September support $16.90 on the downslide may open the door for much lower lows.
- $16.65 also is a clean price target if we see renewed selling pressure led by USD rally.
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