Gold and silver on the path to recovery - Morning Express
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Featuring views and opinions written by market professionals, not staff journalists.
Fundamentals: Gold and Silver had a constructive overnight session amid a bit of an everything rally due to U.S. Dollar weakness and a stable rate picture. This continues to paint a path to recovery for each, but lower than expected Initial and Continuing Jobless Claims coupled with the little whipsaw on the heels of ECB, has brought all metals back from their overnight highs. Platinum has been the leader this week, and one that we have expected, along with Silver, to outperform Gold. The start of U.S. hours for the metals will lean on the tone that ECB President Lagarde finishes her press conference and then becomes focused on the 30-year Bond auction at noon CT. As the weekend nears, we must also ask ourselves if we have entered a time that rising geopolitical tensions in the Middle East make way for added premium into Friday’s closes. Regardless, through yesterday’s settlement at 12:30 CT, Gold grinded ever so slightly higher in a sign that sellers have stepped aside at these lower levels.
Technicals: Gold moved through major three-star resistance at 1727.5-1732.9 briefly overnight and traded to a high of 1738, in front of our 1744 key resistance. Silver also decisively moved out above major three-star resistance at 25.97-26.23 and traded to our next key resistance at 26.44-26.67. Each has peeled back ahead of the opening bell and for Gold that major three-star resistance is still very relevant; it must close above here today or faces waves of selling. However, for Silver, that previous resistance is now support and buyers must respond. Our momentum indicator for Gold comes in at 1724.5 and for Silver, it aligns with that now support; the session is constructive while above here.
Resistance: 1727.5-1732.9***, 1744**, 1757.4-1761****
Support: 1721.6*, 1705.6*, 1690**, 1671-1680***, 1666**, 1645**, 1595-1605****
Resistance: 26.54-26.67**, 27.08-27.34***
Support: 25.97-26.23***, 25.40-24.51**, 24.77-25.00***