Gold Price Rebounds As USD Falls Back From Fresh 2018 Highs

London (Nov 16)  The yellow metal managed to recover this week, trading up off initial weekly lows, to put in a positive week. The move was largely a response to the rally in the US Dollar which traded up to fresh 2018 highs this week on better than expected US CPI before trading back below the level shortly after.

Gold prices have been under pressure recently following a recovery in risk sentiment which saw equity markets posting two consecutive positive weeks following the dramatic declines seen earlier. However, equity markets slumped back this week fuelling a stronger safe-haven bid in gold once again.

Gold prices remain penned in below the 1235.30 resistance level which has now capped price action for three consecutive weeks. For now, there is still the chance of a break higher which would bring the broken bullish trend line from 2015 lows back into focus. To the downside, the 2018 lows at 1158.84 are the first key level to watch with the late 2016 lows of 1122.81 the next level to focus on.

Silver

Silver prices tracked the moves seen in gold this week, trading lower initially before recovering as the US Dollar fell back. However, silver prices did initially trade down to fresh year to date lows and their lowest levels since early 2016. Price has been fairly stagnant around current low levels over the last two months, and pressure is certainly still on the downside for now.

Silver prices pierced below the 13.6704 – 13.9612 level support this week to print fresh 2018 lows before recovering back above the level and forming a potential double bottom. However, unless the price makes it back above the 15.1825 – 15.5734 level, the focus will be on the further downside.

Investing.com

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