Precious Metals Fail to Maintain Rally

Cassie Bastien

8/23/2017 12:05:14 PM

Daily Gold & Silver Market Report – 08/23/2017

On Friday, many investors watched as Gold and Silver prices poised for a breakthrough. Yet, SeekingAlpha Research Analyst Tom Luongo, along with many others, saw the attempt fail and analysts say we have yet to see a break of either highs or lows this week. Moreover, for both Gold and Silver prices to avoid further slides, Luongo said, “They both need to violate last week’s high this week.” The problem is there is not much volatility on the horizon, which partly is a good thing. However, when investment relies on volatility, viewers constantly look ahead for the next big move. If this will happen any time soon is the question, and Luongo says “it will take much higher Gold and Silver prices which break their post-Brexit vote highs to get excited that the new bull market has begun.”

Gold Prices Jump After Threats from President Trump

Precious Metal prices as well as the Japanese yen gained ground after President Donald Trump threatened a government shutdown, CNBC Senior Writer Leslie Shaffer said, if he does not receive funding for the proposed Mexican border wall. At a Phoenix, Ariz., rally Tuesday night, Trump said, “If we have to close down our government, we're building that wall,” which caused the dollar index to drop and the price of Gold to rise. Chris Watling, CEO of Longview Economics, told CNBC's "Capital Connection" Wednesday, “It's clearly concerning if he wants to tie the wall to the government shutdown. That's certainly an issue and that's an issue for the dollar.” Shaffer noted, “If Congress does not reach a funding deal that the president signs into law by a September 30 deadline, the government will shut down.” However, Congressional Democrats have said they will not support a deal that includes money for the wall. If Trump chooses not to sign a measure that Congress passes without funding for the barrier, Shaffer said that in itself could cause a shutdown. Treasury Secretary Steven Mnuchin has warned if no action is taken, the U.S. could be in default by October.

September U.S. Dollar Index Futures Trading Lower

FX Empire Reporter James Hyerczyk explained, “Profit-taking and position-squaring ahead of the start of the central bankers’ symposium at Jackson Hole is pressuring the current market.” According to the daily swing chart, the main trend is up. However, Hyerczyk says, “The daily chart is open to the downside so we could see a near-term acceleration into this week’s low at 92.92.” If the trend does move under the 93.25 mark, this could provide support to reach its next uptrend.

At 12:05 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,290.40 Up $2.20
• Silver, $17.12 Up $0.05
• Platinum, $980.00 Down $0.30
• Palladium, $936.00 Up $0.70

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