Gold and Silver Technical Forecast: Recent Gains at Risk as Price Action Hints at Further Downside

Gold and Silver Technical Forecast: Gold started the week in buoyant mood before finding resistance at the $1786 level just shy of the August highs resting above the $1800 handle. The precious metal has since entered a phase of consolidation as hawkish rhetoric from Federal Reserve policymakers and caution around the US dollar has capped any significant moves in either direction.

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Gold and Silver Technical Reports: Is Trend Reversal Afoot in XAU/USD and XAG/USD?

GOLD TECHNICAL FORECAST – BEARISH

The lack of follow-through price action in spot gold after last week’s break below vital horizontal trendline support at 1676 (coinciding with the 200-week moving average) raises some doubts about the reliability of the bearish signal. However, stalling after the break is not a sufficienton its own to conclude that the move was a false one – it could well imply a lag. While the yellow metal holds below 1676, the follow-through decline could occur next week or in due course.

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Crude Oil Price Outlook: Supply & Demand Tug of War Continues for Brent

Brent crude oil broke down on Monday as markets brace themselves for a major central bank themed week. Multiple central banks are scheduled to deliver interest rate decisions with focus on the Federal Reserve. With much talk about a surprise 100bps rate hike by the Fed, markets have propped up the U.S. dollar ahead of Wednesdays meeting leaving brent crude exposed to further weakness should the Fed decide on an ultra- hawkish approach.

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Gold Prices Eye US PPI Data. Is a Big Breakdown Afoot?

Gold prices are trading just above the 1,700 level after steep overnight losses. A surprise inflation reports out of the United States on Tuesday shifted the market’s outlook regarding Fed rate hike bets. The Fed may deliver a 100-basis point rate hike later this month, according to overnight index swaps. That shocked bullion traders, many of whom expected the August CPI number to mark the turning point in the FOMC’s fight against rising prices.

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