THE TECHNICAL DAMAGE HAS ALREADY BEEN DONEGold and silver prices are getting hammered as the investor's attitudes towards risky assets have returned. Today Gold hits a five-week low while silver prices felt more rapidly as expected.
The China stock market reached it's nine-month high today. Asian and European equity market are also heading higher along with the U.S. stock indexes. The U.S. jobs report from the Labor Department which is The most important U.S. economic data of the month is scheduled to release on Friday, Today the eurozone PPI also came out which didn't surprise anyone as Those numbers were in line with market expectations. Analysts are also focusing on upcoming European Central Bank’s r monetary policy meeting which will be held on Thursday as the ECB is expected to take action in order to make the Eurozone economy stronger.
Trade war: Signs of progress in US-China talks
Based on The Wall Street Journal research the U.S. and China are close to finalizing a trade agreement.The story said China would lower its tariffs on U.S. imported goods, with the U.S. doing the same on most or all of the trade sanctions it levied against China last year. The report said U.S. President Trump and Chinese President Xi Jinping will meet in Florida later this month.
The Technical damage in gold and silver chart has already been done as the metal has corrected more than $50 from last month’s highs, many analysts are looking at long-term support at $1,275, which represents a key retracement level in gold’s recent rally. minor corrections should be expected from these levels which could take the price up to $1300 however we'll add more capital to this trade once yellow metal will break below $1270 level as a close below from this level will open the door to more selling.
Summary-It’s a “do-or-die” week for the gold and silver market bulls. They need to step up and show good power this week, to avoid more serious technical damage being inflicted.minor corrections should be expected from these levels which could take the price up to $1300 however we'll add more capital to this trade once yellow metal will break below $1270 level as a close below from this level will open the door to more selling.
