Gold

It’s been quiet start to the week for the gold market, with price remaining roughly around the same levels as a week ago. Friday’s US labour report was a fairly mixed event and wasn’t able to act as a directional catalyst one way or another. The headline NFP reading came in well blow expectations at slightly less than 200k. However, with average hourly earnings beating forecasts and the unemployment rate falling at a quicker-than-forecast rate, the report was not decidedly bearish. The US Dollar was broadly unchanged in the wake of the release, reflected in the stagnant price action we’re currently seeing in gold. However, looking ahead this week there is plenty of room for volatility as a slew of tier-one US data is due. CPI, PPI and retail sales for the prior month are all on the deck this week meaning there could be sizeable moves in USD and, consequently, gold, if we see any surprise readings.

Silver

The silver market has been similarly subdued over recent sessions. There was clear hesitation ahead of the big jobs number on Friday. However, with the release doing very little to inspire a directional move in the Dollar, however, the market feels to have reached an impasse. Given the slew of high level data later in the week, price action is likely to remain subdued until then. If we see any Dollar appreciation across the week, the metals complex, along with risk assets, is likely to become weighted. Alternatively, if we see the greenback under pressure as a result of any data disappointments, this will act as a platform for higher prices in gold and silver.

Technical Views

Gold

Gold prices remain mostly subdued around the 1763.88 level, which continues to hold as resistance for now. While this area holds, the focus is on further downside in the near term with the 1700 handle the next target for bears. To the topside, if bulls can break the current resistance, the next level watch is the 1826.71 marker.

Silver

The recent rebound in silver has seen the market trading back up to test the top of the bear channel. However, this region is holding as resistance for now, keeping the focus on further downside in the near term. Bulls will need to see a break above the 24.0073 level to alleviate the downside risks.