Skip to content

XTB TRADEBEAT

US-N. Korea talks progressing "more quickly than expected"; Precious metals in focus

Summary:

  • White House deliver positive update ahead of historic summit
  • Trump to meet Kim Jong Un. Press conference expected Tues 1PM (BST)
  • Silver, Gold and Platinum could be set for decisive week

We earlier noted that the forthcoming week could be a big one in the markets with the Fed and ECB rate decisions the stand-out events. However, it’s not just central bank meetings which could dominate the week’s trade with geopolitics keenly in focus for traders at present. The G7 meetings over the weekend and the latest Brexit developments could both continue to drive markets, but perhaps the biggest event could be the historic US and N. Korea summit in Singapore.  

According to a recent update from the White House the negotiations have moved "more quickly than expected", after the initial discussions were carried out. The two country’s leaders have a highly anticipated meeting scheduled for tomorrow before a press conference from Trump is expected to begin at 1PM (BST). After the fractious G7 summit in the last few days the media will no doubt focus on the upcoming meeting and thee vents could well have an impact on the markets. 

Geopolitical risk can often be seen most clearly in precious metals with Gold for instance spiking sharply higher after the shock outcomes of the Brexit vote and the US election. Let’s now look at the 3 precious metals offered on xStation and see the current technical situation.

Gold

link do file download link

 Gold made a strong break lower last month but has traded in a narrowing range since. Source: xStation

 While Gold is probably the most popular precious metal to trade, it has been a relatively quiet market this year with what looked like a major break of support around 1300 failing to spark a decent pick-up in volatility. The trading range has compressed of late but there is the growing feeling that price won’t remain this quiet for long and either the Fed rate decision or a geopolitical shock could provide the catalyst for a larger move. Recent lows around 1282 are potential support while 1304 could offer resistance. Most indicators point to the market being in a downtrend here and it would require a move back above 1304 to negate the break lower seen last month. 

Silver

link do file download link

 Silver has moved above last week’s high already today and a clean move above 16.91 would pave the way for a larger rally. Source: xStation

The market managed to post a steady week of gains last time out, although there was clear selling pressure around 16.91 once more. Price is retesting this region now and a break above here would open up the possibility of a larger move with 17.34 the next swing high. The 8 and 21 EMAs have turned positive and the bulls may be looking to push home their advantage in the coming days. 

Platinum

link do file download link

 A series of reasons could be made for why the 900-906 region is important resistance for Platinum. Support lies around a potential double bottom of 867. Source: xStation

Platinum also recorded a weekly gain last time out and the market is now approaching a potentially key resistance. A falling trendline dating back to the start of the year is being tested once more and a break above there would offer the bulls a chance for further gains. A second falling trendline with a less steep gradient from March is also in the vicinity.  A double bottom may have formed at 867 and this is now a key support if price turns lower. 906 has rebuffed prior attempts in the last couple of week and a break through there would also see the prior trendlines violated. 

 

Disclaimer

This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.

Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.