Gold Fights to Stay Positive in the Day; Palladium on Consolidation Mode

Gold is trading at 1,404, 0.10% positive on the day, but the pair is losing steam as it jumped as high as 1,412 overnight. Technical indicators in the daily chart suggest more dovishness in the short term. For now, the 20-day moving average is acting as a support with the 1,385 as the level to watch for buyers.
Mauricio Carrillo
Gold Fights to Stay Positive in the Day; Palladium on Consolidation Mode
Gold Fights to Stay Positive in the Day; Palladium on Consolidation Mode

Gold lost steam, but it is still fighting to maintain positive reading on Friday and in the week. XAU/USD is consolidating losses after the decline it performed on Thursday that took the unit from 1-week highs at 1,427 to test the 1,400 area.

XAUUSD daily chart July 12

Gold is trading under pressure amid recent dollar strength as the Fed seems that the board will not be aggressive in the next rate cut.

Also, news from the trade war are hitting the market sentiment as Donald Trump is complaining against China. The president reportedly said that China is not honoring promises of purchases of Agricultural products to the United States.

On Friday, XAU/USD is trading at 1,404, 0.10% positive on the day, but the pair is losing steam as it jumped as high as 1,412 overnight. Technical indicators in the daily chart suggest more dovishness in the short term. For now, the 20-day moving average is acting as a support with the 1,385 as the level to watch for buyers.

On the week, gold is closing the week positive but with indecision as the unit remains in range between 1,385 and 1,438. Technical studies in the weekly chart suggest more sideways in the middle term but a bullish continuation in the next weeks.

Dollar index recovers all earlier losses

As a matter of context, the dollar index recovered all initial losses, and after bouncing at 96.90, it retook the 97.00 level and trade back to 97.08, where it is posting gains now.

Currently, DXY is trading at 97.08, 0.02% positive on the day. On the week, the greenback is posting a decline after the recovery performed the previous week. DXY is closing the period with 0.11% a drop.

Metals report for Friday, July 12, 2019

Silver is trading negative for the second straight day but the decline on Friday is limited as the unit is performing a Doji candle, signaling indecision in market.

As the price of silver is moving near to the 15.10 level, investors are closing positions ahead of the weekend. XAG/USD is currently trading at 15.10, 0.08% negative on the day.

On the week, however, the unit is posting 0.75% gains as the unit is closing its first positive week in the last three.

Copper wasn’t able to sustain gains at 2.7115 earlier in the day. The pair got a rejection at the highest level since July 1, and it was launched to trade as low as 2.6700. XCU/USD is now trading 0.45% down on the day at 2.6725.

On the week, copper is closing the week with limited gains as the unit bounced back from 2.6090 but was rejected at 2.7114. Now it is closing 0.42% positive.

Palladium is consolidation levels after the decline performed on Thursday when the unit failed to keep the 1,600 level, and it fell to 1,550. Today, the unit is trading flat at 1,560.

On the week, palladium is closing the week with losses for the first time in the last six weeks. XPD/USD is taking a breath after the 22% rally performed since the first week of June. However, technical indicators and the chart pattern are suggesting more room for the upside.

Platinum is trading down for the second straight day as the XPT/USD is extending losses from Thursday highs at 833.10 to Friday’s lows at 817.75. Currently, the metal is moving 0.55% down in the day at 819.45.

On the week, platinum is posting gains, but it remains in the lower part of the range it traded in the last three weeks. XPT/USD is finishing the week 3.95% positive.

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