For the past two weeks, metals have been declining gradually after multiple months of gains, leading both Gold and Silver to rise to new levels, not seen since the end of last year.
Moreover, both metals have broken above key resistance areas, which keeps the possibility for further gains unchanged.
However, as we noted in our last week’s reports, the downside correction was needed before the upside trend resumes.
Indeed, since then, both metals eased back gradually, and they are both nearing former resistance areas, which switching into solid support area ahead.
In today’s article, we will have a look at both metals from a technical and fundamental point of view, speculating the possible trends ahead and where are the possible levels where the buyers are likely to appear.
Fundamental Catalysts Ahead
In the next few days, there are many economic figures and events will be released, which likely to have a direct impact on metals.
As for today, It is considered as one of the most important days of the week as we wait for the US ADP Non-Farm Employment Change, which will give us some clues about Friday’s Jobs Report (Non-Farm Payrolls).
However, the most important event is the Federal Reserve meeting later tonight (FOMC Statement), which likely to have the biggest impact on the markets, especially if the Federal Reserve continues to talk about raising rates further and the ongoing discussion about unwinding the Fed’s balance sheet.
As for the rest of the week, the US Jobs Report would be another key event to watch, in addition to the long-awaited French election on Sunday, where it might lead to some notable gaps next Monday.
Read more: https://www.orbex.com/blog/2017/05/precious-metals-trends-gold-prices-might-bounce/