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Gold & Silver Price Analysis and Talking Points:

  • Gold Prices Focus on Pivotal Resistance
  • Silver Price Outlook | Outperforming Gold as Prices Eye Key Resistance

See our quarterly gold forecast to learn what will drive prices throughout Q3!

Gold Prices Focus on Pivotal Resistance

Gold prices have managed to consolidate above the $1400 as slowing Chinese growth provides yet another reminder of the deteriorating economic outlook. Overnight, Chinese Q2 GDP fell to 6.2% from 6.4%, marking the weakest quarterly growth since 1992. However, while gold prices pulled off its lows of the day since the release, the precious metal remains contained, given that weaker Chinese data raises the scope for fresh stimulus. Alongside this, the rest of the data had been relatively firm with both retail sales and industrial output beating analyst estimates, which in turn, suggests that the stimulus that the government has already provided is potentially having a positive impact going into the second half of the year. Going forward, with little on the economic calendar, focus will turn towards Fed’s Williams, who is a voter this year.

On the technical front, technical resistance remains pivotal for the precious metal. Given the series of lower highs and with the weekly time frame showing the RSI hovering in overbought territory, there is a risk of a slight pullback. Although, any pullbacks are likely to be well supported amid the backdrop of slowing global growth coupled with the Fed looking to ease monetary policy.

GOLD Technical Levels

Resistance 2: $1435-40 (Double-Top)

Support 1: $1380 (July low)

Support 2: $1373 (23.6% Fib)

GOLD PRICE CHART: Daily Time-Frame (Aug 2018 -Jul 2019)

Gold Prices Eye Key Resistance, Silver Prices Outperforming Gold

What You Need to Know About the Gold Market

Silver Price Outlook | Outperforming Gold as Prices Eye Key Resistance

Silver prices have continued to edge higher since finding support at the psychological $15 level, which is now eyeing key resistance in the form of the 38.2% Fib level at $15.33. Last week, we had highlighted that the surge in ETF buying of silver bolds well for the outlook, while at the same time we continue to expect silver to outperform gold on a pullback in the gold/silver ratio which hovers around a 20yr high.

Silver Price Chart: Daily Timeframe (Oct 2018 – Jul 2019)

Gold Prices Eye Key Resistance, Silver Prices Outperforming Gold

GOLD TRADING RESOURCES:

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX