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Gold markets came under pressure as traders sold their strongest assets to cover positions during Monday’s global market downturn, but recovered as traders covered their positions, while silver lost more than 5% as the gold/silver ratio shot higher, and platinum prices are nearing critical support at $900, according to analyst Vladimir Zernov at FX Empire.
“Gold rebounded from session lows as traders reacted to the better-than-expected ISM Services PMI report,” Zernov wrote. “From a big picture point of view, it looks that traders sold gold to raise money during global market sell-off.”
Meanwhile, silver continues to see strong selling pressure as the gold/silver ratio rallied above the 88.50 level.
“If silver stays below the support at $27.20, it will move towards the next support level at $25.20 – $25.60,” Zernov warned. “RSI is in the moderate territory, so there is enough room to gain momentum in the near term.”
Platinum is also down over 5% as fears of a U.S. recession mount. “Unlike gold markets, platinum markets are not trying to rebound as traders fear that demand for platinum would decline in the upcoming months,” Zernov wrote.
“A move below the $900 level will push platinum towards the support at $880 – $890,” he said.
Kitco Media
Ernest Hoffman
