Gold and Silver bounces amid profit-taking ahead of the Quarter-end

Gold and other precious metals such as Solver and palladium are trading positive on the last trading day of the week and the quarter as investors are booking gains and closing positions ahead of the end of the period.

Gold bounces from 1,287 and it is currently recovering the 1,300 area, while silver is at 15.20 after defending the 15.00 level successfully. Palladium pared losses, but it is on track of its worst week in months.

On gold, FX Empire analyst James Hyerczyk considers that “if the buying is strong enough today to generate a higher close then look for the start of a 2 to 3 day counter-trend rally.”

On the fundamental picture, The US dollar index is declining for the first time in four days, while US Treasury bonds are performing in good shape. Brexit will have another vote on Friday with Theresa May giving up her position to try to save the deal.

Economic data in Europe reported mixed as retail sales in Germany was well above expectations in February, but the GDP in Spain came shorter than expected.

GDP in the United Kingdom was reported in line of expectations with a Quarterly growth of 0.2% and an interannual advance of 1.4% in the last quarter of 2018.

In the United States, Personal income and spending data were reported slightly below expectations.

Dollar index in a consolidation phase

The US Dollar index is trading sideways on Friday as the unit was unable to consolidate gains at 97.35 and it returned to move just above 97.00. DXY is currently trading at 97.10, 0.10% negative on the day.

DXY is closing its first positive week in the last three.

Gold up on profit-taking

Gold is posting gains on Friday as investors are closing the week and the quarter. The pair defended the 1,237 level with success, but gains will be limited to the 1,300 area.

XAU/USD has a complicated task between 1,300 and 1,310 if it wants to break up for a total recovery.

On the week, Gold is losing all the ground advanced in the last three weeks. On the month, XAU/USD is falling for the second month and suggesting more declines in the long term. The 1,280 area supports pair.

Silver up on quarter rebalancing

Silver is trading 1.10% positive on the day as investors are booking profits ahead of the weekend and the end of the quarter. Silver bounced back from 15.00 to trade as high as 15.20. Currently, it is pricing at 15.18.

XAG/USD is also closing its second negative month in a row, but the unit is inside a more clear pattern with the metal trapped in a horizontal channel between 15.00 and 16.20.

Palladium’s decline takes a pause

Again, profit booking is making palladium to go up on Friday. However, after three days of several sells, XPD/USD is performing its worst week in three years and its first monthly decline since July 2018.

Palladium is currently trading 3.4% positive on the day at 1,393.