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The yellow metal cratered to fresh 12 month lows this week as a resurgent US Dollar and cascading oil prices combined to shunt the safe haven metal lower. The US Dollar has been rallying firmly this week in response to Fed chairman Powell’s testimony before the Senate where he gave a very encouraging outlook on the US economy. Alongside raising rates at its last meeting, the Fed also upgraded its dot plot forecast to two further hikes this year from one previous and Powell’s comments this week reaffirm this view.
After stalling at the completion of the large ABCD corrective pattern, gold prices have since broken lower, moving beneath the key 1235.95 level. The focus is now on the test of the next key support level at the 1205.29 level which is the May 2017 low.
Silver prices were similarly under pressure this week tracking the moves in gold to plumb its own fresh 12-month lows. After a long-stagnant year so far, silver prices have finally been showing momentum over recent ...
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