Copper Prices Shake Off Weak China Data & Resurgent USD

Gold

Following an impressive run over recent weeks, gold prices retreated this week as the US Dollar rebounded from initial lows. Despite a heavy tone to the week initially, the USD was buoyed by the release of the 2018 4Q GDP on Thursday.

This saw the final reading of the year print 2.6%, well above the expected 2.2%. The reading brings overall 2018 growth to 2.9%, just shy of Trump’s 3% target, and sill a very a firm reading indeed.

Gold prices also received a knock this week from improved risk sentiment in response to the Hanoi summit between President Trump and North Korean leader Kim Jong Un.

The meeting ended prematurely and without an agreement. However, it seems it was indeed a positive step and has left the door open for further talks. The market welcomed Trump’s optimistic ton. For now, it seems happy to trade higher on the ongoing dialogue between the two sides.

xauusd

 

Gold prices traded steadily lower this week. They made their way back under the 1325.96 level, which has now turned resistance. Price is fast approaching a key area where we have confluence between structural support at 1298.29 and the rising trend line from 2015 lows. Bulls are likely to use this area to reload. Only a break of this level would negate the bullish bias in the near term.

Silver

Prices were similarly lower this week, weighed on by the pullback in gold as well as the resurgence in USD over the week. Silver prices continue to receive bullish forecast by investment banks projecting higher prices on increased demand from the auto-sector. However, with world trade currently faltering, this increased demand seems yet to materialize. And, for now, prices remain subdued.

silver

 

After trading up to test both the bearish trend line and the 16.2267 structural resistance a second time, silver prices have turned sharply lower. Once again, they are testing the 15.5700 – 15.1800 support. If price can hold above here, the focus remains on an eventual break above the bearish trend line.

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