Platinum price is affected by the stability of the barrier near $1690.00, despite the attempt to provide positive momentum by the main indicators, which forces it to provide new sideways trading near $1650.00 level, attempting to settle above the extra support at $1600.00.
Reminding you that the bullish scenario will remain valid by the stability of the price above 61.8% Fibonacci extension level that is located near $1625.00, which makes us wait to breach the current barrier, then targeting new historical stations that might begin at $1745.00 reaching the next main target near $1835.00.
The expected trading range for today is between $1610.00 and $1690.00
Trend forecast: Sideways until achieving the breach
Platinum price is affected by the stability of the barrier near $1690.00, despite the attempt to provide positive momentum by the main indicators, which forces it to provide new sideways trading near $1650.00 level, attempting to settle above the extra support at $1600.00.
Reminding you that the bullish scenario will remain valid by the stability of the price above 61.8% Fibonacci extension level that is located near $1625.00, which makes us wait to breach the current barrier, then targeting new historical stations that might begin at $1745.00 reaching the next main target near $1835.00.
The expected trading range for today is between $1610.00 and $1690.00
Trend forecast: Sideways until achieving the breach
Silver price (XAG/USD) holds positive ground around $51.90 during the early Asian session on Wednesday. The white metal retreats from an all-time high after a historic squeeze in London began to show some signs of easing. However, the potential downside might be limited amid trade tensions and US rate cut expectations.
A rise in Silver price in the previous session is bolstered by concerns over a depleting silver inventory in London, which drove prices to a premium over those seen in New York and prompted traders to ship metals across the Atlantic for a profit. Nonetheless, a historic squeeze in London began to show some signs of easing, which might drag the white metal lower.
Rising trade tension between the US and China boosts the safe-haven flows, benefiting the Silver price. US Trade Representative Jamieson Greer said on Tuesday that US President Donald Trump could slap China with 100% tariffs on November 1 or sooner, depending on Beijing’s next action in a dispute over rare earths.
Bets the Federal Reserve (Fed) will cut interest rates twice more this year might contribute to Silver’s upside. Fed Chair Jerome Powell signaled the Fed is on track to deliver another quarter-point interest-rate reduction later this month, even as a government shutdown significantly reduces its read on the economy. Lower interest rates could reduce the opportunity cost of holding Silver, supporting the non-yielding precious metal.
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Platinum price is affected by the stability of the barrier near $1690.00, despite the attempt to provide positive momentum by the main indicators, which forces it to provide new sideways trading near $1650.00 level, attempting to settle above the extra support at $1600.00.
Reminding you that the bullish scenario will remain valid by the stability of the price above 61.8% Fibonacci extension level that is located near $1625.00, which makes us wait to breach the current barrier, then targeting new historical stations that might begin at $1745.00 reaching the next main target near $1835.00.
The expected trading range for today is between $1610.00 and $1690.00
Trend forecast: Sideways until achieving the breach
Coffee price took advantage of the support level stability at 371.00, to begin activating with the main indicators, forming strong bullish rally to surpass the initial resistance at 390.25, achieving new gains by its stability near 400.00.
The continuation of the positive pressure makes us prefer more of the bullish attempts, to wait for reaching 414.25 level, then attempts to press on the recently achieved top at 424.00.
The expected trading range for today is between 382.00 and 414.25
The British pound initially fell during the trading session here on Tuesday, finding the 200 Day EMA rather quickly.
The 200 Day EMA of course is an indicator that a lot of people will be watching for support, and so far, looks like it is in fact holding.
Whether or not it holds for the longer term we don’t know yet, but it’s worth noting that the British pound has been a bit different than many other currencies around the world in comparison to the US dollar.
Technical Analysis
The technical analysis for this pair is somewhat sideways in general but recently has been somewhat negative. The 200 Day EMA is an indicator that a lot of people watch closely, so if we were to break down below there, I think we go testing the bottom of the larger consolidation area, perhaps sending the British pound down to the 1.32 level. Anything below there then opens up the “trapdoor of doom” in this market. If we were to break down below that level, then I think you would not only see the British pound start to fall against the US dollar, but you would start to see many other currencies get absolutely unraveled as the British pound has been one of the stronger currencies against the greenback.
If we do rally from here, the 1.34 level above is a resistance barrier that I think you need to watch very carefully, because it has been important a couple of times in the past. The 50 Day EMA currently sits at the 1.3450 level and is dropping, so I think that comes into the picture for potential resistance. We are between the 200 Day EMA indicator and the 50 Day EMA indicator, which typically brings quite a bit of volatility into the market. Ultimately, I think we continue to be somewhat sideways, but I also recognize that this is a lot of noise just waiting to happen.
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
Gold keeps on making higher highs on the daily time frame, sitting close to fresh record highs below $4,200 early Wednesday.
Gold remains a ‘buy-on-pullbacks’ trade
Markets continue to witness dip-buying on every pullback in Gold so far this week, as buyers remain undeterred by the bullish sentiment on global stocks.
The latest leg up in Gold seems to be sponsored by the renewed trade tensions between the United States (US) and China after US President Donald Trump posted on social media late Tuesday that he was considering terminating business with China having to do with cooking oil, and other elements of trade, as retribution.
Meanwhile, both sides began charging tit-for-tat port fees on Tuesday, per Reuters. This followed Trump’s retaliatory threats to slap 100% tariffs on Chinese imports as the trade war escalated after China tightened controls on its rare earth exports last week.
US-Sino trade worries combined with persistent bets for two interest rate cuts by the US Federal Reserve (Fed) render negative for the US Dollar (USD), benefiting the non-yielding bright metal.
Despite Fed Chair Jerome Powell’s prudent remarks on Tuesday, markets continue to price in over 90% probabilities for the October and the December monetary policy meetings, the CME Group’s FedWatch Tool shows.
Powell noted that the overall US economy “may be on a somewhat firmer trajectory than expected,” while also cautioning that “there is no risk-free path for policy as we navigate the tension between our employment and inflation goals.”
Further, the USD also feels the heat from a stronger Yuan (CNY) fix by the People’s Bank of China (PBOC), which surprised markets.
On Wednesday, the People’s Bank of China (PBOC) set the USD/CNY central rate at 7.0995 compared to the previous day’s fix of 7.1021 and 7.1281 Reuters estimate.
All eyes now remain on a bunch of Fed speakers for fresh policy cues amid a lack of high-impact US economic releases.
Additionally, the broad market sentiment and US-China trade updates will continue to play a pivotal role in the Gold price action going forward.
Gold price technical analysis: Daily chart
The daily chart shows that the 14-day Relative Strength Index (RSI) is inching further into the extreme overbought zone, currently near 84, suggesting that a pullback remains in the offing.
Meanwhile, Gold buyers are once again challenging the upper boundary of the month-long rising channel, now at $4,184.
Buyers must find acceptance above the topside hurdle of the channel on a daily candlestick basis to resume the record-setting rally beyond the $4,200 round level.
The $4,250 psychological level will be next on tap for Gold optimists.
On the contrary, sellers could fall back toward the $4,100 round level in case Gold faces rejection at the above-mentioned channel resistance.
The next crucial support is seen at the lower boundary of the rising channel at $4,036.
A sustained move below the channel support would confirm a pattern breakdown, fuelling further correction toward the $3,950 psychological mark.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
The EURJPY pair continued providing temporary trading, affected by the stability of the barrier at 177.05 to reach 175.95 again, to announce delaying the bullish attack in the current period.
Stochastic reach below 50 level might force the price to provide more of the corrective trading, to test the extra support at 175.20 to confirm monitoring the price behavior, as monitoring the price behavior is important due to the importance of the support by detecting the expected targets in the near and medium period trading.
The expected trading range for today is between 175.20 and 176.50
Trend forecast: Fluctuated within the bullish track
The Euro to Dollar (EUR/USD) exchange rate slipped to 10-week lows near 1.1550 on Tuesday as investors shunned risk amid renewed trade-war fears and French political turmoil. Despite the weakness, ING continues to forecast a rebound to 1.20 within three months, citing fading U.S. strength and seasonal support for the Euro.
EUR/USD Forecasts: Re-Tests 10-Week Lows
The Euro was unable to take advantage of fundamental dollar vulnerability on Tuesday with markets fretting over the French political situation while fears over escalating US-China trade tensions created an important element of caution across asset classes.
The on-going US government shutdown added to uncertainty with key data releases still unavailable.
The Euro to Dollar (EUR/USD) exchange rate dipped to re-test 10-week lows near 1.1550 as the dollar advanced against risk-sensitive currencies.
UoB is not backing further significant losses at this stage; “Today, EUR could dip below last week’s low of 1.1540, but based on the current momentum, a sustained decline below this level is unlikely.
According to TD Securities global FX strategist Jayati Bharadwaj; “What’s going on in markets is basically a positioning adjustment.”
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Markets are continuing to monitor French political developments with Prime Minister Lecornu attempting to break the current impasse
ING commented; “Today, PM Lecornu is set to speak to parliament before announcing his budget proposal tomorrow, which will ultimately determine his chances of surviving a no-confidence vote, which is expected for Thursday.”
It added; “Another government collapse this week will likely make the euro miss out on any benefits from further escalation in the US-China trade spat. And should the tariff story de-escalate, EUR/USD would likely set its eyes on 1.150.”
ING is still backing EUR/USD gains to 1.20 on a 3-month view and added; “Lower US hedging costs and seasonal trends suggest recent $ strength won’t last.”
Traders will take greater notice of US surveys given the absence of major data releases.
The US NFIB small-business confidence index dipped to 98.8 for September from 100.8 previously.
The Uncertainty Index rose 7 points from August to 100, the fourth-highest reading in over 51 years.
NFIB Chief Economist Bill Dunkelberg commented; “Optimism among small business owners decreased in September. While most owners evaluate their own business as currently healthy, they are having to manage rising inflationary pressures, slower sales expectations, and ongoing labor market challenges.”
Marc Chandler, chief market strategist at Bannockburn Capital Markets expects medium-term dollar losses; “In the three- to six-month view, I think the dollar is going to be falling because I think the U.S. economy is going to weaken and the interest rates are going to come down.”
The German economy is still struggling to make any headway.
The ZEW investor confidence index improved to 39.3 for October from 37.3 the previous month, although this was slightly below market expectations.
ZEW President Professor Achim Wambach commented; “Experts are still hoping for an upturn in the medium term. Despite persistent global uncertainties and the lack of clarity regarding the implementation of the state investment programme, the ZEW indicator sees a slight increase in October.”
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The day’s high aligned precisely with the upper parallel trendline of a long-term rising channel, with the lower channel line connecting the September 2018 swing low and the upper parallel touching the July 2011 swing high. This alignment suggests the market recognizes the line as potential dynamic resistance. But what happens next will be key.
The Relative Strength Index (RSI) reflects overbought conditions, approaching extreme levels, which could preclude consolidation or retracement. Monday’s breakout above a near-term rising channel, following consolidation near its upper boundary, demonstrates robust momentum. Yesterday’s wide-range green candle and close near the high reinforce this bullish behavior, though such trend extensions carry the risk of a blow-off top.
Support Levels and Potential Weakness
Should the top channel line assert resistance, an initial sign of weakness would emerge on a decline below today’s low of $4,090. The 10-day moving average at $3,983 serves as key near-term support, consistently effective since its reclaim on August 22. This level warrants monitoring for signs of buyer defense on approach. A decisive break below $3,983 would target the 20-day average at $3,870, indicating a deeper pullback.
Upside Considerations
A confirmed breakout above $4,180 would position gold for higher targets, though the rising nature of the top channel line means prices could advance further while remaining near or below resistance. The overall structure supports continued upside potential until confirmed weakness appears. Today’s close will provide clarity on momentum sustainability, with the 10-day average as a critical benchmark for the trend’s health.
For a look at all of today’s economic events, check out our economic calendar.
