Silver: the dollar rose, and the market for precious metals
trading recommendations
Sell Stop 14.70.
Stop-Loss 15.10. Take-Profit 14.50,
14.00
the ball in
Friday ascending correctional channel lower line on the daily chart at
at 14.95 after strong data on NFPR couple reduced to the level of support
14.50 and the lows of the year at the level of 14.00.
Despite
oversold, reduced XAG / USD pair is likely to continue.
Couple
XAG / USD drops 3 weeks in a row and the last 7 days non-stop.
of growth
pair constrain resistance levels 15.30 (EMA50), 15.55 (EMA144), 15.85
(EMA200 on the daily chart).
indicators
OsMA and Stochastic on the 4-hour, daily and weekly charts point to
further decline.
Overview and Dynamics
How many times
stated representatives of the Fed and its head Janet Yellen, the rise in interest
rates in December, it is still possible. So, speaking to the US Congress on Wednesday,
Janet Yellen confirmed that a rate hike in December, “really
possible “, but much will depend on incoming data about the state of the economy
United States and its labor market.
Now,
when released on Friday data on NFPR in the US in October exceeded expectations
(271 000 new jobs against 180 000 for the forecast and
137,000 in September), the likelihood of higher interest rate and in the US
It has grown significantly.
on strong
the labor market report for October in the United States responded to the strong precious metals
decrease. So, at the end of trading on the COMEX price of December futures for gold
The dollar fell to 16.50, or 1.5%, December silver futures – on
29.2 cents. WSJ dollar index after US employment data increased to
90.56, reaching its highest level since December 2002. among the participants
market in the US has increased the likelihood of rate increases to 70% in December, compared to 58% to
release employment data.
U.S. dollar
It is growing all over the market, as well as increasing the yield on 10-year Treasury
US bonds.
That’s it
market participants’ attention will be focused on US economic data and
indicators on employment and inflation in November and early December (before the Fed meeting
15-16 December).
In conditions
the increase in interest rates the attractiveness of precious metals, and in particular
silver investment is reduced because the cost of borrowing and storage
It is growing. Nevertheless, the recovery in terms of the economy and the manufacturing sector
US Silver will be in demand as a raw material for industry. it
will support the XAG / USD pair, but the pressure on the pair in the medium
run towards its decline will continue.
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