Kinesis Gold Analysis
Despite growing volatility on stocks, gold is showing little movement. This can be seen as a stabilization signal, while the price is consolidating after the recovery seen in the last ten days.
The strengthening of the U.S. dollar – which followed the last release of the Federal Reserve minutes – is not a supportive element for gold. Despite this, bullion has been able to hold the gains achieved with the recent rebound.
The technical picture remains unchanged over the last few trading sessions, as the bullion price is still playing with the resistance zone of $1,790. A clear surpass of this threshold would open space for new recoveries, with a potential target to the next resistance placed at $1,820.
In the current market environment, the Federal Reserve decisions and the US macroeconomic data – such as inflation and labour data – still appears as the main market drivers for the financial markets and for the gold price as well.
Kinesis Silver Analysis
Silver is traded at $23,3 and once again is slightly underperforming, when compared to gold.
After the long rally, seen in the first part of the year, we are in a correction phase for the majority of commodities. Silver is not making an exception, which is correlated with its high industrial demand. Vice versa, gold is showing more strength, confirming its bigger role as a ‘safe haven’ in the financial portfolio.
We should point out that the long term scenario could offer interesting bullish elements for silver, starting from a growing demand coming from the industrial sector, particularly photovoltaic and electric cars.
Carlo Alberto De Casa is Market Analyst for Kinesis.
He also writes as a technical analyst for the Italian newspaper La Stampa.
Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018.
This report is not an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance.
