Silver and Gold are running again
It is certainly not a big news, but in recent weeks the central banks were again the protagonists. The markets have looked very closely at the Fed, trying to unravel the FOMC intentions for 2017. So also did the precious metals sector. Starting from the gold, prices have rebounded from the bottom reached in December 2016 ($1,122) up to a peak of $1,265 at the end of February. The growing expectations for a new raise of the Fed, which effectively took place on March 15th, have pushed prices to a new correction, with the spot price which fell below $ 1,200. The words of Janet Yellen, spoken in the press conference on the side-lines of the FOMC meeting in March are not, however, seemed overly hawkish, pushing down the dollar and, simultaneously, giving new energy to the gold price, which took the opportunity to bounce towards $1,230 just after the meeting and to $1250 in the last few days.
SILVER FOLLOWS GOLD - The scenario is relatively similar, if not even amplified, for silver. The grey metal, from the peak reached in the area of $ 21 last summer, dipped to lows in the 15.60 area last December. The 2017, however, was begun in a decidedly different manner, with a series of nine consecutive weeks of increases, which had brought the price down over 18 share, towards the highs at $ 18.45. The approach of the March Fed meeting (and expectations for the US rate hike) pushed silver to a nearby down to 10% in just 7 days. A fall that is blurred in this case after the words of Yellen, with the price moved up from 16.7 to 17.4 $.
We can say that the moves by central banks in this scenario are still conducting the orchestra, with gold and silver ready to dance to the tune of the Fed than on real fundamentals. Secondly, we can see how the geopolitical issues are destined to remain central in the coming months, which will be characterized by the French elections and the German ones, but also uncertain Since the start of negotiations for the Brexit, with a further unknown factor linked to the actual moves Donald Trump, with his discussed protectionism. When we talk about gold, however, a look, necessarily goes to Asia. After the collapse of demand for gold in India occurred because of analyst’s demonetization of the end of 2016 look with interest to fundamental data coming from the country, assuming a recovery in demand in the second half of the year. In this scenario the gold underlying trend still seems set to rise and would undergo a new bearish reversal only with a return of prices to below $ 1.200- 1195 and the subsequent confirmation of under $ 1,180. Space for new rallies if prices could jump above $ 1,265, with a potential target at $ 1,305, the area where started the descent the selloff of the last quarter of 2016. A central role, however, will played again by the decisions of the Federal Reserve and perhaps also by the general inflation trend.