Silver MCX Honeymoon Over? Watch Gold Level $1860 What Next?
Silver MCX Tips Today – MCX Silver No Buying And No Selling at this level. Wait For Fresh Update.
Gold MCX Tips Today – MCX Gold Below 49752, Hold Sell For Target Price – 49080—48740
Spot Gold Trading Tips Update – Below $1860 Level Only Sell, Target Price $1834——$1815——$1780
Silver prices poised to extend slide after slicing through Symmetrical Triangle support.
Gold prices capped by former support-turned-resistance. Are further losses in the offing?
Silver appears poised to extend its fall from the yearly high set on August 7 (29.91), after collapsing through Symmetrical Triangle support and the trend-defining 50-day moving average (25.20).
A push back towards the sentiment-defining 200-DMA (20.43) looks on the cards, as both the RSI and MACD indicators plunge below their neutral midpoints and the slope of all three moving averages notably plateau.
A daily close below the September 1980 high (24.18) would probably validate the break of the uptrend extending from the March low (11.64) and carve a path for price to test the 38.2% Fibonacci (22.93) and psychologically pivotal $22/oz mark.
Conversely, price may bounce back to test the July high (26.27) if support at the August low (23.58) remains intact, with a close above the 21-DMA (26.90) needed to bring the yearly high (29.91) into play.
The lack of progress in Congressional stimulus talks, escalating US-China tensions and the absence of additional monetary stimulus could weigh on precious metal prices in the run-up to elections in November, and could see gold and silver continue to retreat from their respective monthly highs.
However, the Federal Reserve’s adoption of average inflation targeting (AIT) and recent comments from New York Fed President John Williams stating that “we’re not shy about doing whatever it takes to get this economy through this really difficult situation and hopefully back to that maximum employment goal as soon as possible” suggests that the longer-term outlook for precious metal prices remains bullish.
That being said, it looks relatively unlikely that the central bank will adjust its current monetary policy settings prior to the US Presidential election.
Moreover, with Congress now shifting focus to replacing the late Supreme Court Justice Ruth Bader Ginsburg, and still needing to approve a continuing resolution to fund the government before September 30, the chances of securing a fiscal stimulus package before November 3 seems out of the question.
To that end, precious metals may struggle to move higher in the near-term if US policymakers fail to quench the market’s need for further stimulus.
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