After 8 days of falling Gold prices, this and other commodities took an upward turn.
In Thursday morning Asian trading, Gold and Silver took an upturn from the days of falling prices. On Wednesday Gold fell to 1147.38, the lowest since November 2014. Silver likewise dropped to 15.259, a price last seen at the start of December 2014.
With pressure from a strengthening dollar, the currency that metals are linked to, these commodities reached major market support levels then reversed early Thursday as low prices lead the bears to cover short positions. In parallel, contrarian traders started to accumulate long positions, going against the current trend and taking advantage of the week’s low prices.
Thursday morning GMT saw Gold up to highs 1166.34 and Silver at 15.688.
The continuing threat of a US Federal Bank interest rate hike, which has lead to an even stronger dollar, has kept the metals at low levels. In addition, the positive nature of the U.S data released last week reporting 295,000 new U.S. jobs and a 5.5% unemployment rate, has pressured metals even further.
However, in terms of global economics, it was the Chinese data released on Wednesday that helped relieve the downturn. Though the data missed expectations, it also showed growth even if it was at a slower pace. China is the second largest purchaser of Gold.
STOCK.com trading analysis for metal commodities is as follows:
Gold - Day Trading Strategies
Bullish scenario: Long positions above the daily pivot point 1153.80$ with targets at 1161.10$ next 1171.60$ in extension.
Alternatively, Bearish scenario: Short positions below the daily pivot point 1153.80$ with targets at 1143.30$ next 1136.00$ in extension.
Gold - Daily Chart Support and Resistance levels
Resistance: 1190.00, 1223.00, 1236.00, 1240.00, 1245.90
Support: 1140.00, 1132.00, 1120.00, 1100.00
Silver - Day Trading Strategies
Bullish scenario: Long positions above the daily pivot point 15.45$ with targets at 15.65$ next 15.95$ in extension.
Alternatively, Bearish scenario: Short positions below the daily pivot point 15.45$ with targets at 15.15$ next 14.95$ in extension.
Silver - Daily Chart Support and Resistance levels
Resistance: 16.00, 16.85, 17.00, 17.75, 18.50, 19.00
Support: 15.25, 15.00, 14.70, 14.15
MT4 Chart: Gold
MT4 Chart: Silver
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