After a significant washout in the prior trading session, the gold market has rebounded noticeably and has managed gains in spite of little direction flowing from the dollar. However the bias in the dollar looks to be pointing downward and that combined with a generally positive metals sector overnight bounce should put the bear camp slightly off balance to start today.
The market might be drafting support from what appears to be another delay in US/Chinese trade meetings with both sides suggesting a push back to "at least" April.
Gold should be deriving some support from overnight news from an Indian gold Association prediction that 2019 Gold Dore imports would be 280 tons versus only 260 tons in 2018. However that news is partially counter veiled by Indian industry predictions of a slightly soft April & May import period. T
he gold market should derive some support from ideas that the PBOC is expected to continue to provide support to its economy especially if the Chinese government provides specifics on the timing of recently announced tax cuts.
The gold market might also draft some support from yet another delay in the Brexit vote but the temporary avoidance of a hard exit takes some safe haven support away.
While the silver market managed to rise above its 200 day moving average earlier this week, it failed significantly at that level yesterday and remains just under that key pivot point of $15.39 early today and that could signal a key trend decision.
We invite you to subscribe to receive our more comprehensive market update delivered directly to your inbox.
Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Financial Services LLC, unless otherwise expressly noted.
