Friday 6 July 2018

Gold breaks a new low

The precious metals of Gold and Silver saw net weekly changes of +$1.30 (0.1%) to $1255.80, and -$0.13 (0.8%) to $16.07 respectively. Near term outlook offers further downside, not least if the USD climbs to the DXY 96s or higher. The m/t outlook would turn decisively bearish if Gold <$1230 and Silver <$16s.

Gold weekly

Silver weekly


Suffice to add, it was not a great week for the precious metals. Whilst gold did settle net higher for the week, it was a fractional gain. Further, gold came within 50 cents of the Dec'2017 low of $1238.30.

Cyclically, neither metal are offering any kind of clear floor/turn. Price structure in Silver was arguably a giant wedge/triangle.. and that clearly broke to the downside a few weeks ago.

As ever, any further strength in the USD will be a downward pressure on commodities, especially gold and silver.