[MARKET ANALYSIS] Gold and silver face pressure from a stronger USD and profit taking
Importance
Level 1
- Precious metals are trading slightly lower. Silver faces a steeper drop thus far, down 4.6%, whilst spot gold is down 0.4%. XAG and XAU trade within the narrow ranges of USD 5,284.62-5,292/oz and USD 84.84-85.13/oz, respectively. Continuous dollar strength continues to hamper gains in the precious metals space despite weaker global risk sentiment amid geopolitical tension between the US and Iran, which increases haven demand for precious metals. Some analysts also suggest that profit-taking has been the key driver behind the slight pressure on the yellow metal. That being said, BMI forecasts that gold should rise above USD 5,600/oz this week with further upside to USD 5,850-6,500/oz if the conflict lasts 2-3 weeks.
- Base metals are also lower, hampered by global risk sentiment amid geopolitical tension between the US and Iran. 3M LME copper trades within the lower range of USD 12.798-13.281k/t.
#UNITED STATES#USD#EUR#JAPAN#JPY#UNITED KINGDOM#GBP#ASIA#EUROPE#GEOPOLITICAL#FOREX#ENERGY#METALS#EU SESSION#HIGHLIGHTED#WTI#COMMODITIES#COPPER#GOLD#SILVER#METALS & MINING#MATERIALS (GROUP)#DXY#MARKET ANALYSIS#TRADE#MARKET UPDATE