Precious Metals Monday 24-04-2023
Metals Under Pressure on Monday
The metals market is kicking off the new week in much the same vein as it finished on Friday. Both gold and silver are under pressure across early European trading on Monday as focus remains on fresh Fed tightening expectations ahead of the upcoming May FOMC. The return of hawkish expectations within the market (.25% hike in May priced in, June pricing building) has seen better levels in USD recently along with an uptick in yields, pulling metals prices lower.
On the back of the recent rallies we saw in gold and silver, the current moves are not yet enough to worry bulls. However, should this week’s US data (GDP and PCE) cause a further uptick in USD buying, this might well prove damaging to the structure of the bull move.
Alongside US data, key US earnings this week will also be on watch and have the potential to create plenty of volatility in risk markets. If equities are seen tanking on any concerning misses and amplified recession fears, safe haven demand is likely to underpin gold prices near-term which should offset the downside from a stronger USD.
Technical Views
Gold
The rally in gold prices off last year’s lows, framed by a well-defined bull channel, has lost steam recently. Price has corrected lower ahead of a test of the 2069.41 level and is now sitting back on support at the 1973.51 level. While this area holds, the bullish outlook remains in place. However, should gold slip back below here focus turns to a test of the bull channel lows and 1871.04 level next, in line with bearish momentum studies readings.
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Silver
The rally in silver prices has seen the market breaking several through key levels on the move off March lows. For now, price is stalled into a test of the 26.0974 level and ci currently correcting lower. While silver holds above the 24.0073 level and broken bear trend line, this bullish outlook remains in place with 26.9149 the next upside level to note for bulls.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.