Gold and Silver Downside Pressure Remains

On Tuesday, the ICE US Dollar rebounded 0.5% after it managed to keep the 93.00 level in the last few sessions, and precious metals are under pressure...

Trading floor 1

Spot Gold: Downside Expected after False Break

On Tuesday, the ICE US Dollar rebounded 0.5% after it managed to keep the 93.00 level in the last few sessions. Spot gold dropped 1.6% and was down for a second straight session, wiping out the gains made last Friday. Official data showed that US core CPI rose 1.7% in September, holding up well since marking a low of 1.2% in May and June, suggesting that the Fed is facing less deflationary pressure.

Investors will also focus on Friday's US retail sales data, which is expected to grow 0.8% on month in September, compared with +0.6% in August.

From a technical point of view, spot gold may have shown a false breakout on the daily chart. It has retreated sharply after breaking above a declining trend line drawn from August, and has formed a bearish evening star pattern. The level at $1,935 may be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at $1,848 and $1,825 respectively.

Source: Gain Capital, TradingView


Silver: End of Technical Rebound


On a daily chart, silver might have resumed its downtrend following a recent rebound. It has formed a bearish evening star pattern after reaching a declining trend line drawn from August. The level at $25.85 may be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at $22.87 and $21.67 respectively.

Source: Gain Capital, TradingView

More from Commodities

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.