Gold:  Weaker US Dollar Keeps Gold Bid

The price of gold remained positive this weeks as the market moved around a widely expected “unchanged” decision from the Fed. Convening for their November meeting, the FOMC judged that given the continued pace of economic momentum, which is deemed to be rising at a “solid pace”, it was appropriate to maintain policy at current levels. The Fed’s guidance regarding the rate path, remains consistent with their previous communication, indicating their commitment to gradual rate rises.

Gold has been under pressure over the last few weeks as investors have reacted positively buoyant US data and diminished geopolitical risk from the situation regarding North-Korea and the US. Despite the bid tone this week, the outlook for gold is clouded as investors are still preparing for a December US rate hike.  Market pricing for a December move is now north of 70% which will undoubtedly weigh on the precious metal as we move nearer to the end of the year.

For now, gold remains stable above the local support of 1260.58 which is the October low. While above here, focus remains on a further run to the topside with the next key resistance coming in at 1295.70s which has been a key pivot over the year and strong resistance over the summer.

Silver: Momentum Remains Lacking Amid Absence Of Directional Catalysts

After a strong rally last week, silver prices stalled this week with weaker US manufacturing data. Industrial readings were widely expected to disappoint in the wake of a destructive US storm season though for the most part, it seems that a strong downturn has been avoided.

After testing the rising trend line of a larger triangle pattern, price has since turned upward though momentum has stalled this week. The current layout suggests that focus will remain on further upside. The local October swing high around 17.4569 will be the initial upside focus with deeper resistance at the descending trend line of the triangle pattern.