Precious metals continue lower despite massive physical buying

By Peter Bukov|

Published: February 04 2021, 09:59 GMT+0

Precious metals continue lower despite massive physical buying

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As most US mints have run out of physical silver and gold and are completely sold, the price continues sharply lower, with gold down 1% today, trading at 3-week lows and silver was 2% weaker, seen at around 26.40 USD.

Later in the day, the Bank of England’s meeting is due. The central bank is expected to keep rates and its pace of bond purchases on hold and may move further away from the idea of negative rates as the UK benefits from a rapid vaccination campaign.

During the US session, jobless claims will be released, along with factory orders and nonfarm productivity. 

In the FX, the greenback is accelerating higher, with the EURUSD pair breaking below the important 1.20 handle. We warned of a large head and shoulders pattern, which materialized and has potential toward 1.1750.

Moreover, the USDJPY pair jumped above 105.00 and is up seven days in a row, another strong signal that the USD might have already found its bottom.