Precious metals failing to convince, resisted by their 21-DMAs


  • Precious metals have been less volatile in recent sessions.
  • Brexit and weakness in the U.S. economy had been providing support for the haven metals.

Precious metals have been somewhat less volatile in recent sessions and today, Thursday, the price of Gold has ranged between $1483.53 and $1497.45, up by 0.24% on the session. Meanwhile, the price of spot Silver, was firmer on a percentage basis, travelling from a low of $17.31 to a high of $17.64. 

The Brexit developments have been dominating the financial and commodities market's space and while a deal between the European Union and UK was passed by the 27 EU members, markets are now bracing to see if a vote in the British parliament will seal the deal or, alternatively, see the deal blocked and sending PM Johnson back to the drawing board. 

US data

Also, further signs of a weakness in the U.S. economy had been providing support for the haven metals. Subsequently, Gold for December delivery on Comex added $4.30, or 0.3%, to settle at $1,498.30 an ounce. December Silver, meanwhile, put on 18.5 cents, or 1.1%, at $17.612 an ounce, following a 0.3% gain on Wednesday.

The Philadelphia Fed showed that a gauge of business activity dropped to 5.6 in October from 12 in September. Industrial production from the Federal Reserve also dropped and by  0.4% in September, which was the largest drop since April.

Gold levels:

The price 21 and 50-day moving averages are priving to be a tough spot of resistance for the yellow metal. Repeated failures here open up risk tot he downside again where the bears will seek out a  50% mean reversion of the late June swing lows to recent highs around 1460/70. On the upside, bulls will look for a close back above the psychological 1500 level ahead of the 1520 area and the1535 resistance target. 

Silver levels: 

Technically, Silver has been unable to break above the 21-day moving average which opens the case for a re-run to the downside whereby the trend-line support will remain a focal point. A break there will bring back prospects of a run back to a 61.8% Fibonacci level down at 16.10, guarding the 200-day moving average which is resting in the 15.99s. 

 

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD edges lower toward 1.0700 post-US PCE

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.

EUR/USD News

GBP/USD retreats to 1.2500 on renewed USD strength

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.

GBP/USD News

Gold struggles to hold above $2,350 following US inflation

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. 

Gold News

Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium

Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000

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. 

Read more

Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too

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.

Read more

Forex MAJORS

Cryptocurrencies

Signatures