Waiting to Sell the Retrace in Gold XAU and Silver XAG, As They Remain Bearish on FED Hike Fears
Skerdian Meta • 2 min read
Gold has been bearish for about a week, as it reversed from around $1,800. Buyers have been weak since then and today the price remained weak as a firm US dollar and higher US Treasury yields dampened the safe haven appeal of Gold and Silver. Gold futures were down for the fifth straight day as we approach the lowest of this month. They were down 0.25% to ₹51,350 per 10 gram.
Silver futures fell 0.6% to ₹55,144 per kg. In global markets, spot gold was down 0.5% at $1,728 per ounce, after falling nearly 3% last week. Among other precious metals, spot silver has also been bearish but it has retraced higher in the last two hours, gaining 0.2% as it climbed to $19.06.
Gold prices fell 1% yesterday to the lowest level in nearly four weeks, as expectations of more interest rate hikes by the U.S. Federal Reserve fueled a rally in the Dollar and took the shine off Gold. Gold traders are also worried about what will come of the Jackson Hole symposium, which will be held this week.
Chair Powell’s remarks will likely be ”a key avenue for the Fed to push back against the notable easing in financial conditions sparked by his last remarks, which has seen markets price-in rate cuts immediately following the rate hiking cycle, and is likely to be inconsistent with the Fed’s inflation mandate,” as analysts at TD Securities explained. ” As market expectations for rate cuts subside, speculative appetite in precious metals should dry up even further.”
Gold H1 Chart – The Decline Picks Up Pace
Waiting to sell the retrace at moving averages
Today Gold (XAU) and Silver (XAG) made a new low, but in the last couple of hours, we have seen them retrace higher, which looks like a good opportunity to sell these safe haven metals. We are already short on XAG with a sell Silver signal, while waiting for XAG to reach the 20 SMA (gray)on the H1 chart, so we can open a Gold sell signal.