The U.S. Dollar finished last week strengthening against a large majority of currencies.
The recent macroeconomic data released in the United States are increasing the pressure on the Federal Reserve for further hawkish decisions. Markets are now pricing the interest rates to be in the region of 3.5 – 3.75% by the end of this year. Therefore, it is not a surprise that in the last few trading days we have seen a challenging scenario for precious metals.
Both gold and silver posted losses. The yellow metal declined by around 40 dollars, slowing down from $1,800 to $1,760, while silver lost over 8%, falling from $20.7 to $18,9, posting five negative trading sessions in a row. Also, in early trading today we have not seen any rebound signal, with silver traded below the key level of $19 per ounce.
The ratio between gold and silver jumped above 91, around 2% less than the peak reached 6 weeks ago at 92.5-93.
Overall, the short-term technical scenario remains weak, with space for further declines. There are some important support zones around $18.5 and particularly between $18 and $18.2 per ounce, where the low was reached in July.
Carlo Alberto De Casa is an external Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. Carlo provides regular commentary for UK notable outlets including the BBC, Telegraph, The Independent, Bloomberg, FX Empire and Reuters.
With a credential background in Economic Finance and International Exchange (MA), his critical analysis on gold and silver’s markets performance is frequently quoted by leading publications, week-on-week.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.