Gold Down Amid Trade Optimism, Copper Recovers From a 2-year Low

Metals are mixed on the day, gold and silver are posting losses, but copper is extending its recovery from 2-year lows, while palladium and platinum are consolidating highs.
Mauricio Carrillo
Gold Down Amid Trade Optimism, Copper Recovers From 2-year Lows
Gold Down Amid Trade Optimism, Copper Recovers From 2-year Lows

Gold and silver are trading down on Thursday as market sentiment improved on news that the US and China will talk again on October and the better than expected ADP report in the United States.

Metals are mixed on the day, gold and silver are posting losses, but copper is extending its recovery from 2-year low, while palladium and platinum are consolidating highs.

China-US trade war talks

China’s Ministry of Commerce and US top trade representatives confirmed that both countries would have a new round of negotiations in October.

“Both sides agreed they should work together and take practical actions to create favorable conditions for the negotiations,” China ministry statement said.

ADP employment better than expected

The ADP reported today better private employment conditions in August with the creation of 195K new jobs in the last month, well above the 149K expected by market. On the negative note, July data was revised 14K down to 142K.

Gold down to test 1,535

XAUUSD Gold 1-hour chart September 5

Gold is retracing from a 6-year peak as investors are digesting reports of a new round of talks between China and the United States in October.

On Thursday, XAU/USD is trading down for the first day in the week with the unit now testing yesterday’s lows around 1,535. The sentiment has changed for gold at least in the short term, and technical indicators are suggesting more room for the downside.

However, as far as the metal remains above 1,535, and the more critical 1,520 area, it remains bullish. Resistance lines remain at 1,560 and the psychological level of 1,600.

Silver trades down amid improved sentiment

XAGUSD 1-hour chart September 5

Silver is falling from nearly 3-year highs at 19.54 on Thursday as investors are betting on riskier assets following the confirmation of talks between China and the United States on October.

Traders were waiting for the 19.50 as a possible selling area, and now the price hit it. Besides, the change in the sentiment provoked by the talks is suggesting a more conservative approach on metals purchases.

Currently, silver is trading 2.0% down on the day at 19.20. Technical studies suggest more room for the downside, at least in the short term. The 19.00 area is now supporting the pair. If the unit breaks below there, the next level of play will be the 18.65-75 area.

Copper recovers from 2-year lows

XCUUSD Copper 1-hour chart September 5

Copper is trading positive for the second day as the unit is extending its recovery from September 3 minimum at 2.4756, its lowest level in over two years. A set of ugly manufacturing data around the world this week pushed copper prices down; however, a weaker dollar is lifting the mineral the last days.

Currently, XCU/USD is trading at 2.6250, 1.45% positive on Thursday. Technical studies are suggesting that a bullish extension could happen in the short term. If correct, copper would find resistance at 2.6400, 2.6800, 2.7400, and finally 2.8000, July highs.

Remember that any trade war resolution would be good for copper prices, as well as any improvement in manufacturing data as the base metal is a key player in power and construction.

Palladium extends advance, ready to test double top at 1,600

XPDUSD Palladium 1-hour chart September 5

Palladium is trading positive for the sixth straight day as investors are welcoming trade war talks confirmation. The unit is now testing the 1,570 area, and it has 1,600 on sight.

Technical indicators suggest that a bullish continuation is possible in the short and middle term. As mentioned above, XPD/USD will find resistance at 1,570 and 1,600. To the downside, the unit is well supported by the 1,550 and 1,500 areas.

Platinum rejects the 1,000 area and falls for the first time in three days

XPTUSD 1-hour chart Platinum Sept 5

Platinum is trading negative on Thursday for the first time in three days as investors are pausing their purchases of the base metal due to the trade talks confirmation between the US and China.

Previously, investors jumped into the XPT/USD as an alternative for gold and silver, but as both metals are falling on Thursday, so does platinum. Technical conditions remain bullish for the metal, but it is right now overbought, so a period of consolidation is expected.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US