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MTrading Team • 2023-11-07

Gold and Silver Prices Got Weaker due to Better Risk Appetite

Gold and Silver Prices Got Weaker due to Better Risk Appetite

A better risk appetite appeared to be the main limiter for gold and silver prices. Both safe-haven metals saw a downside earlier this Monday. The metal price has found itself under pressure of up-ticked risk appetite featuring a solid rally in the U.S. stock indexes. Gold and silver prices were down by $8.10 and $0.06 respectively.

Meanwhile, U.S. stock indexes are showing a slight uptrend. The rally was triggered by the recent report that showed solid gains during the previous week. Actually, that was the best weekly rise in 2023. Investors started feeling a bit more relaxed, as there were no major unexpected developments related to the Israel-Hamas conflict. Despite the fact that many countries announced getting seriously involved, the situation remains market-wise.

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This fact gave a slight boost of confidence to the marketplace spirit. As a result, market participants started to act following normal market fundamentals. It forced gold and silver to pull away from safe-haven bidding. At least, for now.

Some countries, like Japan, will continue the easing monetary policy. For instance, BOJ announced it will move on with the yield-curve control policy. Moreover, the Japanese government does not expect the 10-year note yield to exceed 1.0%. It sounds like music to the ears of traders involved in Japan-US “carry” trades.

At the same time, Nymex crude oil is traded at around $82.00 per barrel showing a slight rally. The U.S. dollar index also got slightly higher. In the end, December gold and silver bulls might get a near-term technical advantage, as the prices can be pushed above the solid resistance at $2,050.0 and $24.05 respectively. However, the situation can quickly change bringing the next near-term downside price objective for bears.

Meanwhile, copper showed its highest high in the last four weeks closing up at 371.85 cents on Monday.

May the trading luck be with you!