Gold and silver prices have found a short-term bottom

After several sessions of decline, buying power has returned quite clearly. This shows that the selling side is gradually losing strength, opening up the possibility that gold and silver have found a short-term bottom.

Gold and silver prices rose sharply again in early trading in the US. Gold futures for June delivery rose more than $57 to $3,030 an ounce, while silver futures for May delivery rose more than $0.72 to around $30.32 an ounce.

Risk aversion in global markets has eased somewhat, helping Asian and European stock indexes gain slightly. In the US, stock indexes are also expected to open sharply higher. However, concerns about trade tensions remain, with almost daily announcements from the White House or major countries regarding tax policies. This keeps investors on their toes.

The Wall Street Journal has likened the current situation to the Great Depression of the 1930s, when the US also raised import tariffs, causing global trade to collapse and leading to the Great Depression. China and the US have shown no signs of backing down in their tariff confrontation. Some observers believe that China could devalue its currency to gain an advantage in international trade. The yuan is currently at its weakest level against the US dollar since September last year.

In addition, the market is also closely watching external factors such as the US dollar, oil prices and bond yields. The US dollar fell slightly, oil prices rose slightly to around $ 61 / barrel. The yield on the 10-year US Treasury bond is currently at 4.13%, rising this week despite the remaining risk aversion. The rising yield suggests two possibilities: either the bond market believes the financial storm is over, or they are predicting slower economic growth and rising inflation – this is called “disinflation”.

Technically, gold bulls still have the upper hand in the short term. This week’s developments have shown that the bears have weakened. The next target for bulls is to push the price above the resistance level at $3,201. Meanwhile, if gold falls back, strong support is around $2,950. The immediate price zones to watch are the resistance level of $3,050 and the support level of $3,000.

In silver, buyers and sellers are in balance in the short term. However, recent developments suggest that silver may have also bottomed out temporarily. The next target for buyers is to break above $32, while if it falls, the key support is around $27.50. The silver market is hovering around $30–$31 and needs more signals to determine a clearer trend.

Source: https://baoquangnam.vn/gia-vang-va-bac-da-tim-duoc-day-ngan-han-3152325.html