Gold, Silver Up as Hong Kong Protests Spark Risk AversionTechnical studies suggest that gold is ready for more gains, but a period of consolidation is needed due to overbought conditions. To the upside, resistance is at the mentioned 1,510. Then, check the 1,530, and the 1,560 for selling zones.
Yes, the reluctance to buy high volatile assets, in other words, risk aversion, has taken the market and metals such as gold and silver are gaining positions.
Gold and silver recovered from earlier dips but Hong Kong violent protests took the headlines, especially after the local government decided to cancel all airport departures for the rest of the day.
The news pushed down US equities and global bond yields. It fueled gold and other metals.
Gold above 1,500
Gold is trading positive on Monday as investors are buying safe-haven assets due to global economic concerns, trade war, and ongoing violent protests in Hong Kong. Risk aversion is the topic of the day.
XAU/USD jumped above the 1,500 psychologic level on the first trading day of the week, but it remains below last week tops around 1,510. Currently, gold is moving at 1,505, which is 0.58% positive on the day.
Technical studies suggest that the pair is ready for more gains, but experts anticipated a period of consolidation due to overbought conditions. To the upside, resistance is at the mentioned 1,510. Then, check the 1,530, and the 1,560 for selling zones.
To the downside, the current short-term floor is at 1,490, followed by 1,450 and 1,440.
Silver finds support at 16.80
Silver is trading negative on Monday, but it is off lows as the unit recovered most fo the losses suffered earlier in the day.
After finding support at 16.80, the unit started to recover ground, and it is now trading at 16.95, 0.05% down on the day. In the bigger picture, XAG/USD is consolidating levels after a rejection at the 17.20 area last week.
Technical studies show mixed signals, and the pair looks trapped between 16.80 and 17.20. To the downside, below current range, it will find supports at 16.60 and then 16.20. To the upside, 17.30 would be the immediate resistance once the unit has broken the range.
Copper shaken but it now trades sideways
Copper is performing a volatile day on Monday as the unit jumped to test the 2.6115 area, but it got a rejection that sent the unit to 2,5660. Then, the cross started a recovery that drove the metal to 2,5900.
Currently, copper is trading at 2.5885, 0.14% negative on the day. The unit remains capped by 2.6100 area, a level that has been acting as a resistance in the last three trading days.
Technical studies suggest more room for the upside, but the unit needs to consolidate levels above the mentioned 2.6100 price.