Silver and Gold Prices Boost Attributed to Weak US Dollar

Silver coins

Silver coins

The precious metals, gold and silver, hit a two-week high and a higher U.S. day session. The $1,300 level has got the gold bulls heightening their interest in the precious metal.

Meanwhile, the safe-haven demand for gold and up to a lesser degree silver has been attributed to the heightening of recent geopolitical tensions. The U.S. dollar depreciating against the other major currencies earlier this week is said to be grounds for the bullish element for the precious metals markets.

The alleged reports of U.S. President Donald Trump stopping the North Korea-South Korea demilitarised zone during his Asia trip in the next week have increased the geopolitical worries. In the meantime, the European Union (EU) is worried, and the stock markets are shaky due to the possibility of Catalonia seceding from Spain.

The U.S. dollar index on a corrective pullback from the recent gains was lower again recently. And, there are some signals of the dollar index being put in a near-term low.

The traders and investors are looking forward to one of the most important U.S. data points of the week that is the minutes from the latest FOMC meeting. The marketplace is reportedly expecting the Federal Reserve to raise the interest rates by 0.25% at the FOMC meeting in December.

Meanwhile, the December silver futures prices hit a two-week high and closed near the session high on October 10, 2017. The silver bears and bulls are back on a level overall near-term technical playing field. The next upside price breakout objective for the silver bulls is closing prices above solid technical resistance of $18.00 an ounce, while the downside price breakout objective for the bears is closing prices below solid support at last week’s low of $16.345. The first resistance was seen at a high of $17.28 on October 10, and this week’s low of $16.765.

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