Precious metals rose on dovish comments from the ECB as president Lagarde indicated that stimulus is available if needed. The US dollar reversed its bullish direction and Silver was buoyant by healthy Industrial profits of Chinese firms for a fourth month. ECB Governing Council member Hernandez de Cos said Sunday that significant monetary stimulus should stay in place and that steps to boost stimulus further should not be discounted should they become necessary.
Precious metal prices have found support from a weaker dollar index as most short- term technical indicators on the daily charts for gold are bearish despite last night’s rally. The 14-day RSI is though in bearish territory has a trajectory upwards suggests a recovery. Medium term indicators have also turned bearish with the MACD pointing down suggesting short-term weakness. Resistance lies at $1992.2 followed by $2015.47. Initial support is at 1848.58 followed by a key psychological level of $1800.
