The euro rallied to its 200 day moving average at $1.103 yesterday, a level it hadn’t approached since early November, but it didn’t have enough steam to break through the technical barrier. It has since backed off this level and has retreated as market participants turn their attention to the expected Fed rate hike in the US next week. The precious metals are trading lethargically with gold stuck in an unimpressive $7 range today. It has spent this week in a tight $20 range. Sellers have emerged consistently above $1,080 while bids have lifted it back up any time it has broken below $1,070. The falling crude oil price will likely continue to weigh on the precious metals complex so the risk is weighted towards the downside in the near term. Should the $1,070 area decisively break in gold, next support is coming in at $1,050. Silver has steadily sold off over the past four trading days and is looking to attract bids at the $14 handle.
Keep an eye out tomorrow for US Retail Sales and PPI figures at 5:30 AM PST.
We believe that everyone deserves a properly developed strategy for financial safety.
Chief Market Analyst, ITM Trading