- Gold's 4-HR 200 MA is located at 1,510 and is guarding 1,550 level.
- Silver consolidates around the 21-daily moving average and daily pivot point.
Precious metals were higher on Thursday, with Silver travelling higher from $17.59 to a high of $17.93 while Gold prices climbed from $1,489.13 to $1,504.60. The gold and silver ratio travelled between 83.87 and 84.66 with a bullish bias as gold surges on.
However, Gold for December delivery on Comex dropped $9.60, or 0.6%, to settle at $1,506.20 an ounce, while December Silver was losing 3.5 cents, or 0.2%, to $17.884 an ounce. The futures were marking their first losses for four sessions following the Federal Reserve earlier in the week disappointing the bears with a hawkish rate cut and unlikely to cut as immediately as in the next few months as first anticipated. A data-dependent Fed was not committing to further rate cuts and markets will now be looking closely to progress with US/Sino trade talks over the next few weeks.
Trade talks are now critical again
In an article in the South China Morning Post, Michael Pillsbury, Donald Trump’s adviser on China, was reported saying that the president is ready to escalate the trade war if a deal is not agreed soon - a prospect that will kick off a risk-off environment, cap US stocks that are testing summer highs again and support precious metals higher, and likely force the hand of the Fed yet again.
The bearish pin bar and the 4-HR 200 moving average is keeping the bulls in check with a series of failing bullish attempts higher in the 1,500s. A 50% mean reversion of the late June swing lows to recent highs around 1470 guards the 19 July swing highs at 1,452.93. On the upside, the 4-HR 200 MA is located at 1,510 and is guarding 1,550 level is still the target to breach which then opens prospects for 1,590 as the 127.2% Fibo target area.
Technically, Silver remains confined within the breakout point between trendline support and resistance converging around18 the figure and the 21-daily moving average and daily pivot point. Bulls will look to a break towards the September highs of 19.64, which n the downside, bears can look to the 16.50s.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.