Gold & Silver Price Analysis and Talking Points:
- Gold Prices Bounce Off Resistance, Outlook Remains Bullish
- Silver Price Outlook | ETF Buying Sparks Silver Outperformance
See our quarterly gold forecast to learn what will drive prices throughout Q3!
Gold Prices Bounce Off Resistance, Outlook Remains Bullish
Gold prices saw a firm bid from the $1400 level in yesterday’s session as risk appetite deteriorated, consequently boosting flight to quality flow into safe-haven assets. Although, on the technical front, the precious metal failed to break above its near-term trendline resistance, which in turn has seen gold prices pullback slightly. However, the global economic environment remains fragile and the earnings season is likely to confirm as much with companies downgrading their outlook amid the ongoing trade war between the US and China, which is showing little signs of being resolved anytime soon, thus the impact of the current tariffs will have to be factored in. As such, the outlook remains supportive for precious metals. Going forward, eyes will be on potential comments from Fed’s Williams and Bostic.
GOLD Technical Levels
Resistance 1: $1430 (Trendline)
Resistance 2: $1435-40 (Double-Top)
Support 1: $1380 (July low)
Support 2: $1373 (23.6% Fib)
GOLD PRICE CHART: Daily Time-Frame (Jul 2018 -Jul 2019)
What You Need to Know About the Gold Market
Silver Price Outlook | ETF Buying Sparks Silver Outperformance
Silver prices have risen 5.3% throughout the week, which so far is its best weekly performance in 3yrs. This in turn, has seen silver break above $16, hitting highs of $16.11 and therefore has continued to outperform gold with the gold/silver ratio dropping to 88.75 from its 26yr peak. This appears to be largely based on the recent surge we had highlighted in ETF buying of silver, in which total holdings are the highest since August 2017, when silver prices were at $16.90. That said, we continue to see room for further outperformance in silver over gold.
Silver Price Chart: Daily Timeframe (Sep 2018 – Jul 2019)
GOLD TRADING RESOURCES:
- See our quarterly gold forecast to learn what will drive prices through mid-year!
- Just getting started? See our beginners’ guide for FX traders
- Having trouble with your strategy? Here’s the #1 mistake that traders make
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
