Gold is not interesting to investors, but not silver
Investing in gold again became uninteresting short-term investors because of the dollar and its rapid strengthening in recent weeks. Troy ounce of the precious metal on Tuesday, may 29, costs $1297 and slightly reduced. Last week’s minimum is around $1280 per ounce, and it cannot be excluded that, due to the expensive dollar gold does not protest the “bottom” again.
This fundamental trump card – a strong dollar is working against gold for a little while. The Euro/dollar on the eve of updated lows 28 Oct 2017 after the Spanish and Italian news forced the participants to abandon purchases in Euro currency. In Spain with a Bang erupted old corruption scandal.
In Italy, problems may arise with the new government. Reasons for optimism in the Eurozone is not enough to ensure that the market happily bought the current sales. Even against the background of empty macroeconomic calendar of grinbek comes vigorously and actively. In principle, the Italian political crisis may point to restore purchases of gold, if the situation is not stabiliziruemost.
On the other hand, some pressure on gold prices is having the relaxation of tensions in Asia. Latest news indicate that the meeting between the leaders of the United States and North Korea may still take place, and it reduced the need for investors in the assets of the quiet harbour. In addition, the seasonal factor of demand for gold in China has exhausted itself in India too.
According to “Alpari gold”, the technical pattern of trading in gold shows that the precious metal is likely to slide in the region of $1284-$1294 per ounce, if the dollar will continue to rise. Intermediate support is at $1290, after its breakdown the bears will go to $1284 and $1280 respectively. An important area of resistance lies on the boundary of $1300-$1315.
Given the ambiguity of existing catalysts, the optimum thing you can do now in gold is to stay on the sidelines and watch.
Silver prices on Tuesday falling, but in the medium term, the precious metal still stands in the hallway $16-$17, where it belonged in the current market conditions. Short-term silver may drop vigorously after the breakdown region supports $16,35-$16,40, but below $16,16 per ounce now unlikely to abate.