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Precious Metals Turn Positive

Last updated 8/10/2012 11:25 AM EST (GMT -5) 0 Comments - Add your comment

Precious metals started the day quietly along with equities and EUR/USD. Silver, which is also an industrial metal, was the worst off after Chinese trade data showed exports growth slowed to just 1% in July from 11.3% the month before. However, as we headed towards the European close, traders started to square some of their bearish positions going into the weekend. This caused precious metals and the euro to rise sharply. Other traders were weighing up the possibility of monetary easing/stimulus from the PBOC, and were therefore increasing their bullish exposure to gold and silver. The former came off its best levels on profit taking near the 38.2% Fibonacci level ($1625/30) of the last major sell-off. Silver also pulled back a little after testing resistance at $28.30. Fresh buyers are likely to be interested once the metals break and hold above these levels.

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About The Author

Fawad joined GFT as a technical analyst in 2010 and has since focused on timely market commentary and research for GFT with an emphasis on technical analysis. He achieved his CISI Level 3 Certificate in Investments (Derivatives – Retail) in early 2011.

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