{"id":154834,"date":"2019-09-05T11:37:53","date_gmt":"2019-09-05T15:37:53","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=154834"},"modified":"2019-09-05T11:37:53","modified_gmt":"2019-09-05T15:37:53","slug":"precious-metals-soar-on-poor-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/09\/precious-metals-soar-on-poor-data\/","title":{"rendered":"Precious Metals Soar On Poor Data"},"content":{"rendered":"
September 5, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Both gold and silver are continuing to soar this week. Today\u2019s losses are owed partially to profit-taking, and partially to headlines that the\u00a0US and China are going to meet for further talks in October<\/strong>.<\/p>\n

Safe-haven\u00a0demand for precious metals increased.\u00a0<\/strong>This comes\u00a0despite the yen experiencing a bearish shift from capital inflows in riskier assets.<\/p>\n

Despite the de-escalation of the Hong Kong unrest and\u00a0positive Brexit<\/a>\u00a0and Italian politics, XAUUSD and XAGUSD prices seem to be supported by weak economic data.<\/p>\n

Metals Likely to Remain Bid Regardless of NFP\u00a0<\/strong><\/h2>\n

Following a week of profit-taking ending September 6, gold and silver found some\u00a0backing from contractionary US ISM Manufacturing<\/strong>\u00a0data on Tuesday. XAUUSD marked a third consecutive day in the green on Wednesday. Meanwhile, XAGUSD marked a fourth. This has caused some short-term pullback mainly seen today, Thursday. And traders are pocketing some profits after an amazing run.<\/p>\n

Adding to it from a fundamental point of view, Wednesday\u2019s surge came about after comments from the ECB.\u00a0 Upon\u00a0Europe printing a recessionary retail sales number, IMF Chief and future ECB President Christine Lagarde made comments on longlasting policy accommodation in the euro area.<\/p>

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Furthermore,\u00a0many economies seem to be crossing into a technical recession.\u00a0<\/strong>PMI data around the world is diving below the 50 \u2018safety\u2019 mark. The one that seems to be holding up firm against effects of\u00a0the lingering trade war,<\/a>\u00a0surprisingly enough, is China.<\/p>\n

Although the markets could drastically\u00a0change\u00a0tomorrow after the NFP result, traders of both metals are unlikely to step out from longs that easily. And this is due to the fact that Fed might be pushed for two extra cuts in 2019 now should US PMIs remain weak<\/strong>. Consequently, traders are aware of what poor Manufacturing PMI can mean for the employment sector.<\/p>\n

XAUUSD Hits April \u201913 High Despite Bullish Lag<\/strong><\/h2>\n

Gold has been moving along with economic rather than political developments this week. This is contrary to its behavior last week. It\u2019s also been moving on some technicals, of course.<\/p>\n

As long as\u00a0XAUUSD rests above the $1521\/oz support the upside potential remains intact.<\/strong>\u00a0In the quiet possible scenario prices break below the said level, market participants should turn to lower levels as institutions will most probably\u00a0step in to buy the dips.<\/strong><\/p>\n

The downside potential could send prices down to $1444\/oz, provided the\u00a0expanding flat pattern<\/strong>\u00a0has wave C to complete.<\/p>\n

It remains to be seen whether the multiyear high reached yesterday was indeed a\u00a0false break. Or simply perhaps a fresh high<\/strong>\u00a0that is going to lead to more buying. Note that the RSI paints a helpful signal.<\/p>\n

\"XAUUSD\"<\/a><\/p>\n

XAGUSD Near $20\/oz, More Bullish than Gold<\/strong><\/h2>\n

The silver breakout above $16.10\/oz a few weeks back has brought massive institutional flows,\u00a0moving parabolically.<\/strong><\/p>\n

Without a divergence or a technical signal appearing on the charts,\u00a0silver might end up appreciating higher<\/strong>\u00a0while gold remains in either a consolidation or falls.<\/p>\n

The current formation indicates that XAGUSD could find some headwinds at the 2.618% extension near 20.65\/oz. Whether a correction will follow in the short-medium term is still unclear but highly possible considering\u00a0profits haven\u2019t been taken out<\/strong>\u00a0for quite a while now.<\/p>\n

A potential correction could weaken silver down to the $18.3\/oz area or even for a retest of the $17.53 lower high. However, the RSI seems to suggest that the latter may be too low for the current geopolitical and economic environment.<\/p>\n

\"XAGUSD\"<\/a><\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Both gold and silver are continuing to soar this week. Today\u2019s losses are owed partially to profit-taking, and partially to headlines that the\u00a0US and China are going to meet for further talks in October. Safe-haven\u00a0demand for precious metals increased.\u00a0This comes\u00a0despite the yen experiencing a bearish shift from capital inflows in riskier assets. Despite […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-154834","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154834","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=154834"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154834\/revisions"}],"predecessor-version":[{"id":154838,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154834\/revisions\/154838"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=154834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=154834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=154834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}