Gold explodes on Gaza and Economic outlook

Gold and Silver continue to rebound aggressively on the back of news in Gaza. This week we’ve seen Gold hit the floor at US$1809, then hit a weekly high of US$1884 within a 5 day period. After a week of both precious metals being seriously oversold, it is welcome relief to see both metals pulling back into line and aiming for their 200MDA.

Economic news from the US also aided in bullion’s upward cycle. PPI and CPI results (producer and consumer) have given mixed feelings and added to the confusion within markets. PPI results came in higher than expected at 0.5% (anticipated 0.3%) and the all important CPI data came in slightly higher than expected at 0.4% for the month (anticipated 0.3%). Higher inflation data will give the FED’s itchy trigger finger on interest rates more cause for action prior to Christmas. 

Employment data through jobless claim continues to be steady, sitting around 210,000 for the month.

Last week we predicted a small rebound rally for both Gold and Silver, but did not expect such a strong turnaround in sentiment. Keep an eye on precious metals pricing over the next week, because once pricing starts moving it generally stays in that direction. 

We’ve included both precious metals and the SP500 charts for you today, as well as technical forecasts below.

Gold, with 200MDA

Silver, with 200MDA

SP500, with 200MDA

Gold Futures Technical Analysis

Gold futures monthly analysis is a NEUTRAL with weekly analysis a STRONG SELL signal.

Technical indicators – Monthly Projections

Summary for Monthly forecast: NEUTRAL

Disclaimer 

This news and any links provided are for general information only and should not be taken as constituting professional advice from Jaggards. Jaggards is not a financial adviser. We recommend you seek independent financial advice before making any financial decisions based on the information contained in this article.