Via AG Metal Miner
The Global Precious Metals MMI (Monthly MetalMiner Index) moved sideways last month, inching down a mere 0.37%. Precious metal prices today are trending sideways in general. However, as a whole, the market appears more bearish than bullish in the short term. Gold, in particular, faces bearish pressure from investors due to its correlation with the USD. But while the USD is finally dropping, the gold index remains somewhat high. This has only served to make gold an even more expensive investment.
This bearish pressure continues to clash with recession fears. While investors typically turn to precious metals as a safe haven during recessional times, the historically high USD index and high-interest rates continue to fight against precious metal prices. In fact, the two metrics continue to clash despite the drop in the USD index from Q4 of 2022.
Palladium prices continue to near long-term support levels. For investors, this serves as a point of interest in terms of precious metal prices today. If support levels break, potential price declines could occur. However, upside price actions cannot be ruled out completely.
In April 2022, gold prices broke through short-term support with ample strength. This created a downtrend and placed seller resistance in a good position to pressure any bullish rallies like the one the market is currently experiencing. In November, the downtrend broke in the short term, which included a strong rally right up to long-term resistance levels. As of February 2023, gold prices again exhibit strong short-term bearish potential. But if prices fall enough and bounce off of long-term support zones, they could reverse up again.
In April 2022, resistance levels formed once platinum prices broke down and created new highs. Currently, prices continue to react bearishly after tapping into long-term resistance levels. However, possible downside continuation may occur until a price reversal to the upside occurs.
Once silver price action demonstrated displacement to the downside in March 2022, the strong declines broke through prior lows. This went on to form long-term resistance levels. Upon entering 2023, silver prices started trading sideways and recently broke down from range. However, potential further declines shouldn't be ruled out as prices continue to seek new support levels.
By Jimmy Chiguil and Jennifer Kary
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