Precious Metals Monday 15-06-2020

<h2><strong>Gold</strong></h2>
<p>The gold market has started the week under some mild selling pressure as the US Dollar continues to recover recent losses. Equities markets have been in freefall over reports highlighting the growing risk of a second wave of the virus in the US. While the safe-haven inflow from this risk off atmosphere would typically see gold prices higher, upside is being limited by the simultaneous moves higher in the greenback.</p>
<p>Gold prices have been higher over recent sessions amidst the equities unwind fuelled by second wave concerns as well as a starkly dovish warning from Fed chair Powell who warned that the economic recovery in the US will take a lot longer than many think and warned markets not to get caught up in individual positive data surprises. Powell’s message followed the record May jobs number which saw 2.5 million jobs created. However, Powell warned that it will take some time for the labour market to recover fully. Attention this week will be on the monthly retail sales reading due on Tuesday and expected to rebound to 5.5% on the core reading from the prior month’s -17.2% reading. A positive number should help curtail the equities sell off while any negative surprise should see equities sold further, helping keep gold prices supported this week.</p>
<h2><strong>Silver</strong></h2>
<p>The silver market has had a subdued start to the week also. Reports over the weekend highlighting a fresh spike in cases in the US is raising serious questions for the US recovery outlook and with equities plunging, silver is being dragged lower by the moves in industrial stocks. The rally in USD is also providing a headwind to silver prices here raising the risks of a reversal lower should the picture not improve.</p>
<h2>Technical Views</h2>
<p><strong>GOLD ( Bullish above 1721)</strong></p>
<p>From a technical viewpoint. Gold prices continue to hold between the monthly pivot at 1721 and the 1747.15 resistance level. With VWAP positive, near term bis remains bullish with 1790.76 the main upside target. Any break lower will bring the 1702.15 and 1668.91 support levels into play.</p>
<p><img class="aligncenter wp-image-45273 size-full" title="Precious Metals Monday 15-06-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-15-at-09.46.10.png" alt="Precious Metals Monday 15-06-2020" width="2742" height="1404" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-15-at-09.46.10.png 2742w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-15-at-09.46.10-300×154.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-15-at-09.46.10-1024×524.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-15-at-09.46.10-768×393.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-15-at-09.46.10-1536×786.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-15-at-09.46.10-2048×1049.png 2048w" sizes="(max-width: 2742px) 100vw, 2742px" /></p>
<p><strong>SILVER ( Bullish above 17.22)</strong></p>
<p>From a technical viewpoint. Silver prices continue to hold above the 17.22 yearly pivot, with the monthly pivot sitting just below at 16.82. While these levels hold, near term bias remains bullish, supported by VWAP, with the 187870 level the key upside target. Any break lower, however, will put the 15.7376 level on the radar.</p>
<p><img class="aligncenter wp-image-45272 size-full" title="Precious Metals Monday 15-06-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-15-at-09.51.27.png" alt="Precious Metals Monday 15-06-2020" width="2728" height="1408" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-15-at-09.51.27.png 2728w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-15-at-09.51.27-300×155.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-15-at-09.51.27-1024×529.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-15-at-09.51.27-768×396.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-15-at-09.51.27-1536×793.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-15-at-09.51.27-2048×1057.png 2048w" sizes="(max-width: 2728px) 100vw, 2728px" /></p>
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