Gold Falls Hard Amid US GDP, Palladium Accelerates Drop And Tests 1,400

Precious metals such as gold and silver are performing its third negative day in a row on Thursday amid a lower than expected US GDP and a strong dollar index that is currently breaking above the 97.00 area.

Palladium, the start of the last year has accelerated its decline from all-time highs around 1,615 arched on March 21 to break below the 1,500 critical support and tests levels below the 1,400 level.

Profit taking after the last run motivates XPD/USD losses.

The United States released the final reading of the GDP for the fourth quarter of 2018. It was reported 2.2% growth in the last quarter of the previous year, lower than the 2.6% previously estimated.

The GDP is adding pressure on commodity prices as a lower GDP could give reasons to rate-cut believers.

Dollar index extends advance

The DXY is trading positive for the third day, five out of the six last sessions as investors are digesting good news from the US-China trade talks and dismissing fears on a recession in the United States.

Currently, the DXY is trading at 97.13, 0.20% positive on Thursday. Since its bounce at 95.75 on March 20, the Greenback has recovered 1.50% of value and has gone from 95.75 to today’s intra-day high of 97.20.

Uptrend seems healthy as technical indicators suggest more gains in the short and middle term. Moving averages are now aligned and pointing to the north.

Next resistance is at 97.40, above there, please check 97.70 for a selling zone.

Palladium sell-off goes deeper and trades below 1,400

Investors are now selling Palladium against the US Dollar as they want to book profits after the XPD/USD reached all-time highs.

Palladium is now trading at 1,398, 3.60% negative on the day. In the last three days, XPD/USD has lost over 12% of value. Since its all-time high at 1,615 on March 21, the drop was almost 14%.

The palladium rally was fueled by concern on supply as possible sanctions on Russia hit the confidence. However, the recent dollar run has pushed the palladium down with investors moving on profit taking solutions.

Gold down below 1,300

Gold is trading negative for the third day amid a strong dollar and good news in the US-China trade conflict. The lower than expected GDP is also putting pressure on the gold.

XAU/USD is trading down over 1.4% on the day at 1,292 as the pair broke 50-day moving average at 1,307 and the 20-day MA at 1,301. The unit is currently trading at lows since March 11.

Technical indicators are suggesting more bearishness in the short term while moving averages are mixed.

Silver falls hard and approaches to the critical 15.00 area

Silver is accelerating losses against the US dollar as investors are taking the US GDP as a signal of rate cuts in the Federal Reserve.

XAG/USD is currently trading at 15.07, 1.40% negative on the day. The pair is testing the 200-day moving average and approaching the critical 15.00 area.