The struggles for gold and the precious metal market continue. Although the yellow metal has held its support, the market appears bad. The only savior for gold the entire time has been a battle at $1,725 in the August futures.
It seems like there is a big seller that appears in the gold market daily. However, the bulls have managed to deflect this seller for now. Nonetheless, gold has now reached another critical point where the next major move will be defined. Although many traders remain long, the next big move might be down as economies recover from coronavirus-related lockdowns.
On its part, silver appears steady although it has some unique struggles. All that is currently saving silver is its ability to hold the $17.50 level based on the September futures. Although many investors are long on silver, the next major move might be lower just like it is the case for gold. For now, traders are on a wait-and-see mode looking at the algorithm to determine what direction it will take.
Despite multiple rally attempts, platinum has taken a downside trend. The trend is lower and $850 in the October futures is a crucial resistance. Many investors are short and sellers of rallies into resistance. Just like it is the case of gold and silver, the signals will tell where the markets will head towards in the near term.
Traders and investors should go with the current trend. Trying to predict or forecast the next trend increases the risks involved. Nonetheless, do thorough research before investing to ensure that you get a return on your investment.