August for the Precious Metals – Gold, Silver and… Yen

Geopolitical Tension is back and Korean Peninsula is again in the headlines. That as expected starts the Risk OFF mode, which positively influences precious metals, CHF and JPY and negatively affects the EM currencies and stocks.

Gold is having a great month. Problems with the North Korea is just a creme de la creme here as the XAUUSD was heading strongly higher even two days before. At first, because of the weaker USD after the Jackson Hole Symposium and after that due to the stop loss orders activation after breaking the 1300 USD/oz resistance. The next target is the 1380 USD/oz.

Silver is in a worse position than Gold but is still positive. Here, we broke the long-term up trendline, which opens us a way to test the 18.50 USD/oz resistance.

USDJPY broke the 108.7 support and went to test the lows from April. Bounce here is the last chance for the buyers to remain on the surface. Going below that level will be a signal for a much stronger drop aiming the lows from 2016.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis