- Prices of the yellow metal drop to multi-week lows.
- Rising risk-on mood weighs on both Gold and Silver.
- Silver charted a bearish ‘outside day’ on Monday.
Prices of the ounce troy of the precious metal are trading well on the defensive so far this week, navigating the area of multi-week lows near $1,460.00.
Gold weaker on risk sentiment
As usual in past sessions, the increased optimism around the US-China trade scenario has been weighing on the precious metal and the rest of the safe havens.
In fact, Bullion is posting the first week with losses after three consecutive advances, extending the correction lower from the summer peaks beyond $1,550 to the current vicinity of $1,460, or 5-week lows.
By the same token, Silver extended the sell off after the white metal charted a bearish ‘outside day’ at the beginning of the week. Silver is now navigating levels last seen in early October in the sub-$17.00 region and the door for extra losses remains open if the risk-associated complex maintains the firm note in the next days.
Later in the session, both metals should be paying attention to the release of the key US Consumer Sentiment gauged by the U-Mich index for the month of November.
Gold key levels
As of writing Gold is losing 0.15% at $1,466.30 and faces the next support at $1,460.80 (monthly low Nov.7) seconded by $1,449.39 (38.2% Fibo of the May-September rally) and finally $1,416.12 (50% Fibo of the May-September rally). On the upside, a breakout of $1,502.47 (55-day SMA) would expose $1,519.70 (monthly high Oct.3) and then $1,535.69 (high Sep.24).
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