There were some encouraging signs for precious metals in the run up to the US jobs report yesterday. However, buyers didn’t quite get the right kind of trigger to solidify their conviction and we’re seeing things reset in the aftermath.
Gold had nudged above $5,100 briefly while silver also pushed above its 200-hour moving average to claim a more bullish near-term bias. But amid the stronger US non-farm payrolls, that is keeping any optimism in check on the week.
Looking at the near-term charts:
Gold continues to hold more rangebound in between $5,000 and $5,1000 for the most part this week. The precious metal is down 0.4% today but is keeping within a more narrow band. That as buyers continue to hold price action above the key hourly moving averages but are unable to firmly break the $5,100 level.
The stronger jobs report yesterday pared back some Fed rate cut pricing and helped to underpin the dollar slightly in reaction. But as mentioned earlier, one data point doesn’t make a trend and that could see traders look to fade the overnight move down the road. However, a lot will rest on the US CPI report tomorrow in following this up.
As such, we could see gold keep in a tighter range as defined above until we get the inflation numbers in wrapping up the week.
As for silver, we did see a slow climb to above $86 just before the US jobs report yesterday. However, the momentum is fizzling slightly after the data although buyers are still trying to hang in there. So far, they are putting up a defense closer to the 200-hour moving average (blue line) in helping to keep the near-term bias more bullish.
But overall this week, the precious metal is still largely rangebound and awaiting the next key catalyst for a stronger breakout move.
It’s on to the US CPI report next I guess.
This article was written by Justin Low at investinglive.com.
