Search ForexCrunch
  • Precious metals have been less volatile in recent sessions.
  • Brexit and weakness in the U.S. economy had been providing support for the haven metals.

Precious metals have been somewhat less volatile in recent sessions and today, Thursday, the price of Gold has ranged between $1483.53 and $1497.45, up by 0.24% on the session. Meanwhile, the price of spot Silver, was firmer on a percentage basis, travelling from a low of $17.31 to a high of $17.64.  

The Brexit developments have been dominating the financial and commodities market’s space and while a deal between the European Union and UK was passed by the 27 EU members, markets are now bracing to see if a vote in the British parliament will seal the deal or, alternatively, see the deal blocked and sending PM Johnson back to the drawing board.  

US data

Also, further signs of a weakness in the U.S. economy had been providing support for the haven metals. Subsequently, Gold for December delivery on Comex added $4.30, or 0.3%, to settle at $1,498.30 an ounce. December Silver, meanwhile, put on 18.5 cents, or 1.1%, at $17.612 an ounce, following a 0.3% gain on Wednesday.

The Philadelphia Fed showed that  a gauge of business activity dropped to 5.6 in October from 12 in September. Industrial production from the Federal Reserve also dropped and by    0.4% in September, which was the largest drop since April.

Gold levels:

The price 21 and 50-day moving averages are priving to be a tough spot of resistance for the yellow metal. Repeated failures here open up risk tot he downside again where the bears will seek out a   50% mean reversion of the late June swing lows to recent highs around 1460/70. On the upside, bulls will look for a close back above the psychological 1500 level ahead of the 1520 area  and the1535 resistance target.  

Silver levels:  

Technically, Silver has been unable to break above the 21-day moving average which opens the case for a re-run to the downside whereby the trend-line support will remain a focal point. A break there will bring back prospects of a run back to a 61.8% Fibonacci level down at 16.10, guarding the 200-day moving average which is resting in the 15.99s.