Gold Bounces From Multi-Month Lows; Silver Tests Roof Of Its RangeGold bounces on Monday amid technical buying while platinum is ready to test highs again. Silver remains in range.
Gold opened Monday with gains as investors are buying the metal in low levels. Meanwhile, silver is testing the upside of its recent range and platinum is confirming a technical event anticipated here in FXEmpire.
On the economic calendar, existing home sales in the United States will provide son stamina to investors on Monday. However, the action will come in the second half of the week with central banks in Canada and Japan publishing its monetary policy measures, and the United States will release its second preliminary of its GDP Q1.
Oil is trading positive amid rumors coming from Washington, providing support to gold.
Gold recovers from multi-month lows at 1,270
Gold is trading positive on Monday as investors are welcoming oil crude rates and a consolidation phase in the dollar index. XAU/USD is recovering ground after hitting on Thursday its lowest level since December 27 at 1,270.
After a quiet week, traders are returning to markets with a technical recovery in gold. As Phillip Futures’ analyst Benjamin Lu said in a recent note, gold is now performing a “technical buying, with some people coming and pushing prices up.”
The same story in the dollar index, with the DXY consolidating levels just below the 97.50 area. A move that is supporting gold’s recovery.
Another story moving markets today is the jump in oil following rumors saying that US Secretary of State Mike Pompeo will announce that the United States “will no longer grant sanctions waivers to any country that is currently importing Iranian crude or condensate.”
As gold is positively correlated to oil, the rally in crude is also supporting a recovery in the metal. Remember that gold is seen as a hedge against oil-led inflation.
XAU/USD is currently trading at 1,279, 0.30% positive on the day. To the upside, immediate resistance is at 1,280. Above there, please check 1,290 and 1,303 levels, where 20 and 50 days moving averages are.
Platinum to test 915.00
Currently, the metal is trading at 908.22, 0.55% positive on the day against the US Dollar.
With a natural resistance located at 915.00, platinum is now ready to break above that level and look for the 940.00 new resistance.
Technical studies suggest more room for the upside with moving averages aligned to the north.
However, in the case XPT/USD fails to break above 915.00, it will return below the 900.00 area and will find support at 877.00 again. Below, 750.00 would be the next frontier.
Silver tests the roof of its recent range
XAG/USD has just recovered the 15.00 level, and it is now testing the top of its recent range between 14.90 and 15.10.
The unit is trading at 15.05, 0.29% positive on the day. However, the technical picture looks mixed with studies signaling a possible turn but with weak figures.