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

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Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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