The major breakout VS The major breakdown

29 lis 2018

At the time of publishing this report gold is trading at around $1226 whereas white metal is hovering around 14.30-35.The market is still trying to digest the Fed chairman powell's dowish speech on monetary policy-Powell told the Economic Club of New York Wednesday that “interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy-market was expecting Fed to raise rates on decemeber and gradually in 2019,However expectation was already being cut off by half but after the powell's comments most investors interpreted that the rate hikes will be more gradual than they expected and hence we witnessed a sharp corrective rally in both of the precious metals.The U.S equity market also surged in a significant manner on the news while DXY sold off-Europian and asian equity market were also traded higher-

The European central bank also showed there concern with the ongoing brexit and rising debt level of there member countries but the imortant fundamental factor on which market is focused right now is the upcoming G20 meeting in argentina where the U.S and chinese presidents will meet face to face,easing in the ongoing trade war will move the P.Ms prices higher in a volatile manner however we would be able to witness a sharp fall in prices if market will not sence any ease in the Trade-war and the latter seems more probable

Please note-when analysing the precious metals market we try to be as objective as possible without getting attached to our positions,and for now it seems nothing has changed fundametally or technically than will affect gold and silver prices over a medium and long term,these short term moves don't affect our long term and medium term outlook for the market-

Technicals-Our two position are active in gold and silver, we believe buyers should be very cautious at this point as we believe 1200 level will be easily broken and there is not much support until 1180. Gold -0.73% -0.07% -0.37% 0.17% 0.69% likely will not be able to support around its psychological level if the U.S Dollar keeps rising and there are numerous factors which are suggesting the future dollar strenth-The declined started in Asia-pacific trade after it went below the 100 days moving average at last week

overall it seems that position in gold -0.73% -0.07% -0.37% 0.17% 0.69% and silver -0.14% -0.14% -0.35% 0.49% 0.57% will be highly profitable in coming weeks-we are very bearish for the precious metal sector and we think the downfall has just been started.

existing positions

Currency Pair: XAUUSD -0.61% ( Gold -0.74% )

Sell Stop Entry Price:1220

Take Profit: 1180

Stop Loss:1240

Capital Risk:2000USD(amount may vary depending on your account size and risk tolerance)

Potential Reward: 4000USD

Risk/Reward: 1:2

(we can adjust (limit, close or even reverse) the position before this price level is reached)

Should you require any more information don't hesitate to contact us.

Many regards,


Short term Trades

Currency Pair: XAG -0.83% .USD( silver -0.21% )

Sell Entry Price: 14.500

Take Profit: 14.000

Stop Loss: 15.00

Capital Risk: 2000USD-(amount may vary depending on your account size and risk tolerance)

Potential Reward: 2000USD

Risk/Reward: 1:1

(we can adjust (limit, close or even reverse) the position before this price level is reached)