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.

Ross J Burland FXStreet

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.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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