Gold and silver break below support
Gold and silver sold off sharply on Friday afternoon following the release of US jobs data. As noted above, Non-Farm Payrolls came in above forecasts, while the Unemployment Rate dropped back unexpectedly, and Average Hourly Earnings were stronger than predicted. Overall, this was enough to temper investor sentiment towards rate cuts next year, as the US economy appears to be storming along. This comes despite 525 basis points-worth of rate hikes in 16 months, and significant quantitative tightening. The payroll news led to a surge in the US dollar, and a plunge in precious metals. Both gold and silver sliced through the support levels that they had spent so much time and energy trying to break over when these same levels were resistance. Gold and silver fell again yesterday and remain well below those key levels of $2,000/2,010 and $24 respectively. There’s no doubt that this sell-off has put a huge dent in bullish confidence, particularly as this got such a large boost this time last week. Despite this, the bulls may be staggering, but there’s still some fight there. It’s just a question whether they can hold it together going into the holiday season.
Looking at the 4-hour silver chart, we can see that there’s still obvious room to the downside, although there’s also a small uptick in the MACD.
Looking at the 4-hour silver chart, we can see that there’s still obvious room to the downside, although there’s also a small uptick in the MACD.
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