After reviewing the status of the moves by the and futures, while both precious metals are at their record peak levels amid surging concerns that policies enacted by U.S. President Donald Trump to control rare earth material-rich nations could diminish, as he may overburden U.S. citizens with higher taxes to fulfill his stated objectives at any cost.
After his success in Venezuela, President Trump looks confident enough to continue with the same aggressiveness as he was while sent his troops to Venezuela while Undoubtedly, he has elevated the precious metals prices to an exaggerated extent, where silver has started to feel the extreme, while gold is still trying to hold, but looks ready to follow the surging exhaustion despite its industrial demand.
Technical Levels to Watch
In a daily chart, gold futures look ready to experience a pull down of approximately 7% from the tested peak on Wednesday if find a breakdown below the significant support at $4,720 after the U.S. President Donald Trump’s speech today at 2:30 pm to 3:15 pm Central European Time (CET), which is currently underway in Davos, Switzerland. The summit will involve close to 3,000 participants representing more than 130 countries.
In a daily chart, silver futures have already indicated an advent of exhaustion after making repeated attempts since Monday to cross above the significant resistance at $94.944, and could slide soon after getting some cues from Trump’s speech today.
Undoubtedly, any positive outcome could accelerate this fall with a breakdown below the pivotal point at $86.394 in today’s session. I find that a breakdown below this could push the silver futures to experience a fall of approximately 17.73% from the tested peak today.
Undoubtedly, President Trump is still showing a hard stance on Greenland, but it will be interesting to see how he handles the surging criticism while addressing a gathering of 3,000 participants of international repute today.
Now, the question is whether he will remain overly stretched to establish control over Greenland in front of the international gathering, or he will propose an accommodative policy to fulfill his dream of controlling the big chunk of rare earth material by creating hype over security reasons.
Disclaimer: Readers are advised to take any position in gold and silver at their own risk, as this analysis is based only on observations.
