Gold initially jumped higher following news of the US airstrikes. It gapped up $12 from Friday’s close to trade near $3,390 overnight. But those gains have since evaporated.
Gold dropped back sharply soon after the European open, before buyers crept back in to offer some support. Gold’s inability to hold early gains could suggest that traders don’t expect hostilities to escalate further.
Alternatively, it could simply be profit-taking in an otherwise well-supported market.
More broadly, prices continue to consolidate, and are currently little more than 4% below April’s record high of $3,500. The daily MACD has flattened out just above the neutral area, offering little in the way of guidance over the short-term.
Source: TN Trader
Silver was little-changed when it reopened on Sunday night, trading either side of $36 per ounce. It proceeded to grind higher early in the European session and continues to consolidate, following a volatile few weeks.
A look at silver’s daily MACD suggests that it is still somewhat overbought following several large upward steps earlier this month. It may need to consolidate for longer, or pull back a touch more to help reset the MACD if it has more upside potential.
