Gold and silver, after a few attempts, were both unable to break up through their respective resistance levels of $1,322 and $17.22. The break-down of the euro/dollar trade through the 1.20 level initiated some profit taking in both metals yesterday.
The 30-year U.S. bond broke above the 2% level yesterday, adding further pressure to the metals complex. The metals have remained resilient in the face of a soaring equity market and some calming of tensions with North Korea, and a significant sell-off is unlikely. Gold may trade down to the $1,305 level today and silver may fade as low as $16.87, should the $17 level give way. We continue to see the resistance levels noted above as the hurdle to overcome for continued higher momentum.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.