Precious Metals Monday 11-05-2020

<h2>Gold</h2>
<p>The gold market has started the week in neutral with price hugging the 1703.10 level support currently. Upside momentum has been lost amidst a backdrop of stronger equities prices and a stronger US Dollar. On Friday, the Non-Farm Payrolls report highlighted record weakness in the US labour market with the headline figure registering -20.5 million jobs over April. This was a catastrophic continuation from the prior month’s -807k reading and marks the largest monthly drop in the history of the data. With the plunge in jobs, the unemployment rate was seen skyrocketing to 14.7%, overtaking the 10% reading recorded during the worst of the global financial crisis.</p>
<p>The US Dollar has been higher in the wake of the data however, attracting a safe haven bid while equities appear to be rallying on expectations of further stimulus in the wake of the dollar. With both equities and the Dollar in flight, god has little room to move to the topside. However, price remains supported near recent highs and the near-term bias remains bullish.</p>
<h2>Silver</h2>
<p>Despite the subdued start for gold and the rally in the US Dollar, silver prices have been able to gain some higher ground at the start of the week fuelled by better upside movement in equities prices. With industrial indices beginning to gain ground again as the focus shifts back towards the recovery effort in the US, silver demand expectations are improving slightly, giving the market a lift today. US CPI and Retail Sales will be the key US data releases this week for trader to watch with any USD volatility likely to be reflected in the metals market.</p>
<h2>Technical Views</h2>
<p><strong>GOLD (Bullish above 1668.82)</strong></p>
<p>From a technical viewpoint. Gold prices remain above the monthly pivot (1668.82) despite falling from the rising wedge pattern near recent highs. While prices remains above the pivot, and with VWAP still supportive, the bias remains for further appreciation in the near term with the 2020 highs (1747.15) the next topside marker to watch.</p>
<p><img class="aligncenter wp-image-43219 size-full" title="Precious Metals Monday 11-05-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/05/gold-1.png" alt="Precious Metals Monday 11-05-2020" width="1215" height="634" srcset="https://blog.tickmill.com/wp-content/uploads/2020/05/gold-1.png 1215w, https://blog.tickmill.com/wp-content/uploads/2020/05/gold-1-300×157.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/05/gold-1-1024×534.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/05/gold-1-768×401.png 768w" sizes="(max-width: 1215px) 100vw, 1215px" /></p>
<p><strong>SILVER (Bullish above 14.8690)</strong></p>
<p>From a technical viewpoint. Silver prices have now broken above the local bearish channel (bull flag) formation and above VWAP, which has turned positive. The near term view is now shifting towards further upside if silver can sustain a break above the 15.7376 level. To the downside, any retracement lower will need to find support at a retest of the yearly S1 (14.8690) to keep the bullish bias intact here.</p>
<p><img class="aligncenter wp-image-43220 size-full" title="Precious Metals Monday 11-05-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/05/silver-1.png" alt="Precious Metals Monday 11-05-2020" width="1198" height="611" srcset="https://blog.tickmill.com/wp-content/uploads/2020/05/silver-1.png 1198w, https://blog.tickmill.com/wp-content/uploads/2020/05/silver-1-300×153.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/05/silver-1-1024×522.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/05/silver-1-768×392.png 768w" sizes="(max-width: 1198px) 100vw, 1198px" /></p>
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