Gold and silver futures slipped slightly on Tuesday as equity markets continue their upward ascent while the Dollar has remained firm to start the week. A quieter world geopolitical scene is making for little trader/investor risk aversion in the marketplace at present, and that’s bearish for the safe-haven gold and silver markets. Traders seem to be looking ahead to Thursday, when the European Central Bank holds its regular monetary policy meeting. Many expect the ECB to announce more details on the winding down of its bond-buying program. Meanwhile President Trump told reporters on Monday he was “very, very close” to making his decision on who should chair the central bank. The choice has been narrowed down to three candidates with current Chairman Yellen still in the running but not expected to retain her seat according to predictions from Wall St. Regardless the FOMC is expected to raise rates in December and twice next year, according to a Reuters poll of economists, who now may worry that the central bank will slow its tightening because of expectations that inflation will remain low. In economic data today, readings were upbeat, with two surveys of american companies that showed businesses grew at the fastest pace in October in at least eight months, according to IHS Markit.
Technical levels come in as follows for gold and silver for the remainder of the week. For gold, support is down first at 1269.2. A close under and 1258 is next. Resistance is at the weekly pivot at 1288.8. A close over here and 1300.0 is next. December silver has support at 16.83. A close under and 1658.8 is next. Resistance continues to sit at 1716.3 and with a close above 1740.6.
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