Precious Metals Monday 22-06-2020

<h2>Gold</h2>
<p>The gold market started the week with a bid tone, as buyers drove a rally over the open in Asia. However, gains have started to reverse over the early European session on Monday with equities seeing a recovery rally. Equities price slipped on Friday, leading to a safe haven rally in gold, as investors reacted to news that Apple is closing 11 stores in 4 states across the US amidst rising COVID-19 cases.  Parts of the US have been reporting a steady increase in cases, leading to fears of a second wave of the virus and the potential for further lockdown measures to be reintroduced.</p>
<p>However, it seems that investors are attempting to past these fears as the new week begins with equities rallying firmly and gold prices retreating back below the 1747.45 level highs. A quiet data calendar this week means that the focus is likely to remain on developments within the COVID-19 landscape. If further US companies follow in Apple’s footsteps and announce closures, this will pull risk sentiment down, fuelling a further safe haven bid in gold.</p>
<h2>Silver</h2>
<p>Silver prices have started the week on a firmer footing, managing to retain initial gains, whereas gold was seen retreating. The rally in equities markets, particularly in industrial stocks, has helped support silver prices which continue to hold in range near recent highs, keeping the bullish view intact for now. Better industrial and manufacturing data recently has helped keep silver prices supported and traders this week will be watching eurozone and UK manufacturing PMIs to see if the recovery continued over the last month, which should see silver prices continue to grind higher. Any return to weakness, however, would be firmly bearish for silver prices.</p>
<h2>Technical views</h2>
<p><strong>GOLD (Bullish above 1721.45)</strong></p>
<p>From a technical viewpoint. Gold prices continue to challenge the 1747.74 level which is continuing to hold as resistance for now. With VWAP positive and price still above the monthly pivot at 1721.45, the near-term bias remains bullish. However, momentum studies are flagging bearish divergence suggesting risks of a downside reversal while the resistance level remains unbroken.</p>
<p><img class="aligncenter wp-image-45698 size-full" title="Precious Metals Monday 22-06-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-22-at-09.50.41.png" alt="Precious Metals Monday 22-06-2020" width="2774" height="1580" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-22-at-09.50.41.png 2774w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-22-at-09.50.41-300×171.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-22-at-09.50.41-1024×583.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-22-at-09.50.41-768×437.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-22-at-09.50.41-1536×875.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-22-at-09.50.41-2048×1166.png 2048w" sizes="(max-width: 2774px) 100vw, 2774px" /></p>
<p><strong>SILVER (Bullish above 17.2422)</strong></p>
<p>From a technical viewpoint. The silver market continues to hold above the yearly pivot at 17.2422. While prices holds above hear, the bias remains bullish with the completion of the ABCD pattern into 18.7870 the initial upside objective. Any break below the yearly pivot will see a test of deeper support with the monthly pivot at 16.8488.</p>
<p><img class="aligncenter wp-image-45697 size-full" title="Precious Metals Monday 22-06-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-22-at-10.13.01.png" alt="Precious Metals Monday 22-06-2020" width="2746" height="1628" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-22-at-10.13.01.png 2746w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-22-at-10.13.01-300×178.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-22-at-10.13.01-1024×607.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-22-at-10.13.01-768×455.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-22-at-10.13.01-1536×911.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-22-at-10.13.01-2048×1214.png 2048w" sizes="(max-width: 2746px) 100vw, 2746px" /></p>
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