- Gold prices recovering from the $1,485.39 lows.
- We have seen four consecutive sessions of declines in Gold.
Gold prices have been recovering from the $1,485.39 lows, travelling as high as $1,497.66 and is currently trading 0.69% higher on the day as investors weigh the prospects of talks taking place between the U.S. and China over trade. However, Gold for December delivery on Comex fell 30 cents, or 0.02%, to $, 1498.90 an ounce, while December silver dropped back 8.6 cents, or 0.5%, to $18.10 an ounce.
In gold, we have seen four consecutive sessions of declines with markets turning up the appetite for risk as traders return from summer holidays and a season of risk-off associated to trade wars and global growth diminishing. However, in recent sessions, the news that China is addressing sluggish growth and trade wars with stimulus measures has lifted spirits and word that Washington and Beijing are set to start up trade talks again, despite the recently imposed fresh tit for tat tariffs, has blown some of the speculative air out of precious metals of late.
Gold/silver ratio recently made a 50% Fibonacci retracement of the summer 2016 lows to 2019 highs
Meanwhile, there has been a keen eye on the gold and silver ratio whereby silver has been playing catch up. The ratio recently made a 50% Fibonacci retracement of the summer 2016 lows to 2019 highs with the bias in favour of further downside on a break below the 200-week moving average located in close proximity.
Gold levels
Despite the meanwhile correction, gold is heavy while below the 21-day moving average as it presses on the 23.6% Fibonacci (Fibo) retracement of the July lows to recent swing highs as well as trading below the 1500 handle. Below the 1,480 target, 1,478 comes as the 13 August volatility spike low which guards the 19 July swing highs at 1,452.93. Bulls will need to get back above 1,550 which then guards prospects for 1,590 as the 127.2% Fibo target area.
Silver levels
The 21-day moving average is supporting and the bullish pin bar is keeping bullish prospects alive. However, failure to advance beyond 18.80 will likely leave the door open for bears to jump in and force out a downside play to the17.50s a being the 50% Fibo of 2016 highs to recent swing lows.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.