Precious metals testing resistance

4 июл.

Gold had a good day yesterday, and managed not only to hold on to early gains, but build on them as the session progressed. It was a touch lower this morning, but still trading above $2,350, taking it back up to levels last seen a fortnight ago. It’s a similar story for silver which also had a strong session on Wednesday. It also pulled back this morning, but the chart shows steady upward progress over the past week or so. The daily MACDs on both charts are starting to curl up, suggesting that upside momentum is picking up too. Both metals managed to inch their way into positive territory this afternoon, and gold is now knocking its head against resistance which comes in around $2,365. Again, it’s a similar story for silver which needs to break above $30.85 significantly for it to have a chance of retesting recent highs just north of $32.00. Tomorrow’s US Non-Farm Payroll update could prove to be a big test. If there’s another unexpectedly strong reading, say above 220,000 or so, then this will reduce the market’s hope of two 25 basis point rate cuts this year. That in turn could trigger a sell-off in both gold and silver. But if payrolls were to come in below 180,000, that, in theory at least, should give all risk assets a boost.