Gold, Silver, Copper and Crude Oil Briefing

Gold, Silver, Copper and Crude Oil Briefing

Gold, Silver, Copper and Crude Oil Briefing

$GLD, $SLV, $CU, $USO, $OIL

Commentary: Fed Hawkishness undermines Gold’s price in here. PE

Spot Gold hit 2-month low at 1306, on Bearish movement which broke Key near-term support at 1307

The precious Yellow metal, sensitive on changes of US interest rates, came under pressure after Fed chief Jerome Powell, in his congressional testimony, pointed at strong US economic outlook, indicating that the Fed could increase the pace of rate hikes this year and driving the Buck higher.

Violation of 1370.7 pivot is negative signal which requires confirmation on close blow support to complete failure swing pattern on daily, and confirm double-top (1366/61) for further weakness.

Gold Bears now seeing strong supports at 1301 the 100-Day SMA, loss of which would expose next Key support at 1286, the 200-Day SMA.

The break below 55-Day SMA and formation of double bear-cross, along with new Bearish momentum, increase Southside pressure and maintain negative sentiment.

Note: Broken 55-Day SMA marks solid resistance at 1318, which is expected to keep the Northside capped for now.

The Southside risks skewed towards testing major support at 1303

Gold investors need nerves of steel to stay in this game. But, the truth is that Fed chief Powell really dialed back the FOMC’s Hawkishness, and prices rallied on the President Trump’s ” tariff torpedo ” as investors flocked to haven assets.

Gold sentiment has gone through a see-saw week, but underlying support from both risk aversion and auptick in inflation should keep the 1300-1303 support in place, even more so if the weaker USD narrative comes as I expect it to do.

All eyes will be on China trade-related headlines which could lead to a high level of investor agony. With Senior Level Politburo ministers in the US attempting to diffuse trade wars, the coincidental timing of President Trump’s trade tariffs is about as big of a political snub as it gets and we should expect some retaliation from Mainland China.

We will soon see.

Have a terrific weekend

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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