Precious metals such as gold and silver are trading negative on Friday as investors are booking profits ahead of the weekend. However, both assets are ready to close the week with gains.
What a wild week. Hey FX Emperor, if you are reading this, it is because you have survived this week. After many Trump tweets, China and U.S. exchange of claims, the USD/CNY swings, a rollercoaster in equities, an ugly economic calendar, and an inversion in the bold market, Friday has come, and investors are ready to close positions before it is too late.
You know it, the best-made buck is that which is inside your pocket, especially in this wild market environment.
Okay, metals are trading positive on the week, but Friday is a negative day. However, “It looks like a temporary retracement,” as John Meyer, SP Angel analyst, said in a recent article. “There are many investors who fear the next global crisis, so there is this a sense of ongoing investment into gold, particularly by central banks.”
Gold consolidates above 1,500, negative on profit-taking
XAUUSD daily chart August 16
Gold is trading negative on Friday as investors are collecting profits ahead of the weekend. XAU/USD is currently trading at 1,511, 0.75% negative on the day. However, the week is pretty different.
XAU/USD is ready to close positive for the third week in a row. Gold is posting 1.02% gains on the last five days, but the movements are more on a sideways mode above the 1,500 area and contained by the 1,530.
Technical conditions suggest more consolidation in the next trading days. Chart pattern agrees with that, but fundamental matters are driving the asset. So, a bullish continuation is expected in the middle term.
To the upside, 1,530 is the immediate resistance, above there, 1,615 and 1,640 are the next level to watch. Above there, 1,800 is the next considerable level to watch.
On the month, gold is adding 7.1% gains so far month-to-day. It would be its fourth favorable period in a raw.
Silver to close positive for the second day
XAGUSD daily chart August 16
Silver is trading positive for the second week in a row as risk aversion has been all over the market in the last fifteen days. On the day, XAG/USD is trading negative on Friday, though it is off intra-lows of 17.05.
Currently, silver is moving at 17.20, 0.32% negative on the day. Mostly sideways, but motivated by profit-taking.
Technical conditions suggest more room for the upside, but the 17.40 is containing any upside.
Back to the weekly chart, XAG/USD is trading 1.40% positive, adding to the 4.70% gains on the previous week. On the month, silver is trading 5.80% positive on August, logging also its third positive month in a row.
This article was originally posted on FX Empire
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