The US dollar regained some strength on Thursday, pushing the EURUSD pair back below the 1.18 threshold, undermining both gold and silver.

Silver was down more than 1% during the London session, falling toward 23,50 USD, while gold lost half a percent to trade near 1,785 USD. Despite the dovish message from Jackson Hole, precious metals have failed to maintain any upward momentum, raising risks of an immediate correction.

Economic data from China released Wednesday pointed to the world’s second-largest economy suffering from slowing growth in August thanks to Covid-19 outbreaks and supply disruptions. 

Additionally, the real estate gain Evergrande seems to be going into default as Chinese officials said the company wouldn’t pay interest this week. Many analysts are calling this the Chinese Lehman Brothers event. 

Later in the day, US retail sales data are due, expected to improve from July’s numbers slightly, but remain in negative territory, possibly undermining the USD. Lastly, jobless claims will be released. 

US stocks reversed their losses yesterday and rose sharply, maintaining the dip buying mentality. The SP500 index bounced off its 50-day moving average, confirming the medium-term uptrend for now. Reconnects with important moving averages are always needed in a healthy bull market. 



About Author

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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