Market alert: gold and silver prices down for six days. Will Support Hold  Before Jackson Hole? | IG Bank Switzerland

The gold and silver price has gone down under selling pressure starting the new trading week. However, taking a closer look reveals that the weakness was due to the extension of the price action last week. Due to lower prices many investors have been looking to buy silver SMSF.

The market has gradually been paring back since July, resulting from the FED’s policy expectations. There was a point where there were over two cuts priced for the following year. Yet, the tides are turning as all those cuts are nearly fully priced out. 

Hence, the US dollar is rallying along with the Treasury yields. Thus, it is pressuring the anti-fiat gold to silver prices. This is because the precious metals competed with the fiat currency and the return rate investors could get from them. 

While there was not much risk over the past 24 hours, traders remained focused on what was ahead. Friday, the Fed, with other central bank governors, will speak at the yearly Jackson Hole Economic Symposium.

The policymakers will get a chance to reinforce commitments to fight inflation the world has not seen for four decades. This might lead investors to remove the expectations of the Fed pivot. In the last 24 hours, the new home sales will cross the wires presented by S&P Global US PMI.

We expect things to get interesting a bit later this week. Furthermore, in contrast to the US GDP, Jackson Hole and Fed’s PCE (preferred gauge inflation) will cross the wires. Hence, resulting from all these happening, the XAU/USD endures 6 days of losses, which is the worst streak this year.

It followed the trending fal line from March but was reinforced in August. Yet, since then, gold has shown a break under the 20-day near-term SMA (Simple Moving Average). The support appears to come from the Fibonacci 38.2% extension at 17.32.

The clearing price can open doors to the July testing at a low of 1681. While the same happened to the silver price losing streak since April. The last week was the lowest performance since September 2020. 

It resulted in a negative breakout reaching above the 50-day SMA. Hence it is breaking under the key of the 18.14 to 18.41 support zone and could open doors extending to a broader downtrend. So, considering all of the above, the best time to buy gold and silver is now while the price is low. 

So, why not visit a leading gold dealer in Melbourne today? They can help provide you with different gold bullion items for you to invest in today. The truth is that no transaction is too large or small for them to handle. 

With a gold or silver investment, you can buy silver SMSF to provide you with more assets to enjoy the best retirement. However, the fact remains that gold and silver remain a safe haven while waiting to find out what the Fed plan to do. 

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