Gold broke higher from the bull flag formation as we predicted for several weeks for our buy signal.
Silver beat 1 710/12 as expected for a buy signal targeting 1 726/30, 1 755/58 and 1 763/66. We have now reached 1 804 offering up to 90 ticks profit on our longs already.
Gold beat strong resistance at 1 490/92 for an important medium term buy signal. Buy in to a long and hold for a swing trade.
Already we have seen a 20 points profit as we hit 1 512.
We are buying in to any weakness with minor support at 1 503/02 then a buying opportunity at 1 497/95, with stops below 1 491.
Data from the United States is keenly watched for cues on the central bank’s future monetary trajectory.
Gold is sensitive to rising interest rates, which lift its opportunity cost.
Meanwhile, optimism on US-China trade talks has lifted equities to record levels. World stocks remained on track for their best year in a decade, while Wall Street dipped from near-record levels.
Silver outlook is positive but we are overbought so some consolidation is possible at this stage. Downside is expected to be limited with first support at 1 770/65. On further losses try longs at 1 752/47 with stops below 1 742. — www.fxstreet.com.