Metals plunge despite weaker dollar

It has not been a good week for precious metals as both gold and silver are down notably this week, with gold looking especially bearish as the metal is dropping toward the key support of 1,850 USD again.

If that support is broken, the medium-term uptrend could be over, and a larger correction below 1,800 USD could occur quickly. Silver might deflate toward 22 USD, following gold lower.

The fact that the USD has been weakening recently and metals are lower as well make the bearish case for gold even stronger. 

From other news, the European Central Bank projects that real GDP will fall by 8.0% in the euro area in 2020. Still, President Christine Lagarde warned this week that the region’s economy was taking a bigger hit from the second wave of the pandemic than expected.

Additionally, Lagarde reiterated on Thursday the ECB will deliver a “forceful” stimulus-response at its December meeting. The euro slid somewhat after her comments. 

Later in the day, US jobless claims are due, along with existing home sales. These data should not cause any significant volatility in the financial markets. 

Source: https://www.axiory.com/market-news/metals-plunge-despite-weaker-dollar