Gold Consolidates gains, Silver, Copper, and Palladium Down

Precious metals are trading lower on Tuesday as investors didn’t follow through Monday gains. Commodities are on wait and see mode.
Mauricio Carrillo
Gold Consolidates gains, Silver, Copper, and Palladium Down
Gold Consolidates gains, Silver, Copper, and Palladium Down

Gold is trading flat on Tuesday as investors are waiting for more catalysts before deciding the way they are going to take.

On the other hand, copper, silver, palladium, and platinum are trading down as risk aversion has taken the market following Trump’s tweets.

Dollar index is trading higher after the unit found support at 97.35 earlier in the day.

Investors wait for trade talks and economic calendar

After a storm comes a calm, and after US president Trump’s tweets, it enters the market to digest the situation. After a hectic Monday, Chinese officials confirmed that Vice Premier Liu He will visit Washington this week to lead his country delegation in trade talks.

Fears grew about a possible trade war after Trump’s tweet, fueling risk aversion and underpinning gold and other commodities.

However, now both delegations and officials are providing some sense of calm. So, the market is on wait and see mode, especially before the economic calendar for this week.

Also, the US decision to deploy military pieces in the Middle East due to “indications and warnings” from Iran is also fueling risk aversion.

However, gold prices are not taken the lead and even other metals are posting losses. Wait and see could be the reason.

Watch out for more trade-war related news. As well as imports and exports data in China, RBNZ and BoJ rate decisions on Wednesday.

Gold trades sideways ahead of crucial information

XAUUSD daily chart Gold May 7

Gold is trading flat to negative on Tuesday as investors are waiting for more information. Trade-talks between US and China and conomic data are on the radars.

XAU/USD is trading 0.13% negative on the day at 1,278 as the pair is consolidating levels after two positive trading days in a row. The pair seems contained by the 20-day moving average level.

Edward Moya, senior market analyst at Oanda, thinks that market is focusing on the trade talks developments. “Gold did not deliver a substantial gain following the Trump tariff threat and (gold) markets may see bearish momentum accelerate if we do see a positive outcome with the talks in Washington this week.”

If the pair fails to extend gains beyond 1,290, it will return to the 1,266 level in the days to come. Below there, 1,250 is the next buying zone.

XAG/USD extends rejection from the 200-day moving average

XAGUSD daily chart silver May 7

Silver is trading down for the second day in a row as XAG/USD is extending its rejection from the 200-day moving average level at 14.95.

XAG/USD is currently trading 0.40% negative on the day at 14.83. Technical studies are mixed with the 20-day MA just crossing below the 50 days moving average.

Copper drop big on Tuesday

Copper is trading significantly negative on Tuesday as the unit is losing almost all gains performed on Friday and Monday.

XCU/USD is currently trading 2.0% down on the day at 2.7800 after investors rejecting the 2.8355 resistance.

The unit is now facing the 200-day moving average level at 2.7600. Below, check for Monday’s lows at 2.7320.

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