Precious Metals Monday 13-04-2020

<h2>Gold</h2>
<p>The gold market has seen an impressive recovery rally over the last fortnight. Amidst a backdrop of ongoing, historic interventions from the Federal Reserve, gold prices have seen an acceleration in demand as US interest rate and inflation expectations fall through the floor.</p>
<p>Along with slashing interest rates to just above zero (record low), the Fed has also announced a move into unlimited QE ( first time on record) and now has also launched a massive $2.3 trillion loans program which, for the first time, will included purchases of municipal paper (cities and states) as well as junk-bonds (high risk corporate debt).</p>
<p>These moves from the Fed have seen a levelling of interest rate and inflation expectations for the remainder of the year. Last week, US inflation data showed a -0.4% reading in the headline figure over March which has further propelled demand for gold. With US unemployment rising to record levels and energy prices falling off a cliff, the picture looks promising for gold to continue higher here.</p>
<h2>Silver</h2>
<p>The silver market has been well supported over recent sessions also. Along with receiving a boost from the rally in gold prices, silver prices have also been lifted by the rally in equities, particularly in the industrials. News of restrictions being eased in China has also seen a improvement in the demand outlook for silver which is helping support prices here also. As with gold, the fallback in USD as a result of weakening interest rate and inflation expectations for the US is providing a platform for a continued recovery here which should see silver prices moving higher still in the near term.</p>
<h2>Technical Views</h2>
<p><strong>GOLD ( Bullish above 1556.74)</strong></p>
<p>From a technical viewpoint. Gold prices have now recovered firmly off the yearly pivot/structural support at 1445.98. Price has now recovered above the 1556.75 level and has rallied back atop the yearly R1 at 1628 and the bull channel top.  While price remains above the 1556.75 level a further move higher is likely with the 2020 highs at 1703.10 the next upside region to watch.</p>
<p><img class="aligncenter wp-image-41617 size-full" title="Precious Metals Monday 13-04-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/04/gold1.png" alt="Precious Metals Monday 13-04-2020" width="1217" height="608" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/gold1.png 1217w, https://blog.tickmill.com/wp-content/uploads/2020/04/gold1-300×150.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/gold1-1024×512.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/gold1-768×384.png 768w" sizes="(max-width: 1217px) 100vw, 1217px" /></p>
<p><strong>SILVER (Bullish above 15.0000)</strong></p>
<p>From a technical viewpoint. Silver has now broken back above the yearly S1 at 15.00 and is advancing towards the next topside resistance level at 16.4234.  Ahead of this level, however, silver will face a key challenge at a retest of VWAP. If price can break above VWAP this will be a strong bullish signal suggesting a continuation in the current rally.</p>
<p><img class="aligncenter wp-image-41615 size-full" title="Precious Metals Monday 13-04-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/04/silver.png" alt="Precious Metals Monday 13-04-2020" width="1194" height="607" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/silver.png 1194w, https://blog.tickmill.com/wp-content/uploads/2020/04/silver-300×153.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/silver-1024×521.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/silver-768×390.png 768w" sizes="(max-width: 1194px) 100vw, 1194px" /></p>
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