Gold and Silver Break Lower Out of Pennant Patterns

Gold and Silver Break Lower Out of Pennant Patterns

#gold #silver

$XAU $XAG $GLD $SLV $USD $DXY

Gold fell over 3% Monday, sliding to its lowest mark in more than a month, as uncertainty over more US fiscal stimulus pressured the precious metals complex along with a stronger USD.

Silver dove 9.4% to 24.25 as of 11:17a EDT, its lowest level in over a month.

Spot gold dropped 3.2% to 1,887.26 oz. US gold futures fell 2.8% to $1,906.80.

Wall Street’s major stock market indexes hit their lowest marks in 7 wks Monday, while .DXY rose 0.8% Vs its peers, its highest daily percentage gainer since 19 March.

A move back and close above 1,900 is needed to grant a short-term reprieve but looks like we may have to test the lows of the correction, 1,863 soon.

Gold prices are down about 10% from an all-time high hit in early August as hopes of further stimulus faded.

The Congress has remained deadlocked over the size and shape of a 5th coronavirus-response bill, on Top of the approximately $3-T already enacted into law.

Gold has been feeding off progressive rounds of more aid/relief/stimulus and the fact that this has stopped in the United States for now have halted the gold rally.

Investors now await speeches by FOMC members, including Chairman Powell, who will appear before Congressional committees later this week.

In other metals, platinum declined 6.7% to 865.55 and palladium dropped 4.4% to 2,254.54.

Have a healthy day, Keep the Faith!

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Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he it the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.