Diminished Risk-Off Sent Gold And Silver Lower
Andy Farida | Sep 19, 2017 05:29
Gold
“Everything has its limit - iron ore cannot be educated into gold.”
Overall Sentiment
- There is little sign of de-escalation on the Korean peninsula
Speculative funds positioning
- Short-covering action may have run its course but gross longs are starting to look a tad overstretched
Bullish perspective
- Mild pullback and resilient price action suggest that bulls are in control
Bearish perspective
- Put in a rather bearish weekly candle
- Could this be the start of another leg lower to test key technical support
Conclusion –There is profit taking ahead of US FOMC meeting but market participants expect little fireworks
h3 XAU/USD/h3Silver
“If I have cash and I can't figure a way to put it into real estate or my business, I hold it in gold and silver.”
Overall Sentiment
- Investors reduced haven demand somewhat last week – dollar/yen giving early sign of diminished need for flight to safety
Speculative funds positioning
- Gross long are getting bolder as they increased their bullish exposure for the third week running
- CFTC speculators continue to reduce their bearish exposure – should underpin silver prices
Bullish perspective
- It has successfully broken above the weekly downtrend line – that is bullish
Bearish perspective
The white metal put in a rather bearish weekly candle – follow up selling has materialised
Conclusion – Although it started to look bearish, we continue to see silver consolidating first from recent gains before testing higher
h3 XAG/USD/h3Market moving events this week
- European market focuses on German election
- Expect volatile price action ahead of US FOMC
- Dollar index has recovered somewhat – CFTC managed money indicate unwinding in process
- BoE latest to indicate that stronger inflation data encouraged the need to raise interest rates
- ECB to follow perhaps before end of the year
Get The App
Disclaimer: This material is produced solely by TheBullionTimes and with the best intention of informing readers about the latest outlook on the precious metals industry. Any material in this content must not be reproduced without the consent and any indication are not trading signals as such.
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.