Gold and silver prices break higher as 2019 comes to a close
Precious metals gold and silver both staged an impressive upside breakout rally in the last full trading week of 2019 for precious metals. Silver lead the advance, rally sharply higher towards the $18.00 level after moving through the technically important $17.50 resistance area. Gold later followed silver higher, with the yellow-metal breaking through the psychological $1,500 resistance barrier. At current trading levels the price of gold is set for a year-to-date gain of close to twenty percent, as traders continue to seek safe havens amidst times of economic uncertainty.
The XAUUSD pair is only bullish while trading above the $1,480 level, key resistance is found at the $1,525 and $1,550 level.
If the XAUUSD pair continues to trade below the $1,480 level, sellers may test towards the $1,460 and $1,445 support levels.
Bitcoin holds $7,000
Bitcoin continued to trade above the $7,000 support level as the number one cryptocurrency looked to close the month with a small trading loss. The BTCUSD pair found resistance from just below the $7,700 level and started to retrace back towards the $7,100 support area. The broader cryptocurrency market started to move higher earlier this week, however, the rally soon faltered. Litecoin and Ethereum are now poised to close the month of December with heavy double-digit losses after coming under pressure earlier this month. Bitcoin is still set to close the year with a ninety percent trading gain despite the recent sharp pullback from the $10,000 level over recent months.
The BTCUSD pair is only bullish while trading above $7,100 level, further upside towards the $7,800 and $8,600 levels now seems possible.
If the BTCUSD pair moves below the $7,100 level, price could fall back towards the $6,800 and $6,500 levels.
The British pound remained under pressure against the US dollar currency this week, with the pair continuing to erode its recent gains. Sterling fell toward the 1.2900 support level earlier this week, marking a 600 point decline from the post-UK election high of 1.3500. The GBPUSD pair has been one of the worst performing currencies of over recent days and is set to close the month of December with just a small gain. Brexit tensions have come back into focus, placing the GBPUSD pair under pressure as traders fear a hard-Brexit scenario under British PM Boris Johnson’s leadership.
The GBPUSD pair is bullish while trading above the 1.3200 level, further upside towards 1.3300 and 1.3370 seems possible.
If the GBPUSD pair holds below the 1.3200 level, further selling towards the 1.2900 and 1.2800 support levels remains possible.
The Australian dollar continued to break to the upside against the US dollar as commodity-related currencies continued to perform well as 2019 came to an end. The AUDUSD turned technically bullish for the first time since March 2018, with bulls performing multiple daily closes above the pairs 200-day moving average. The Australian dollar also benefitted from expectations that the RBA may not cut interest in early 2020 as they take a wait-and-see approach towards rates. The AUDUSD pair is now on course to trade above the 0.7000 level as bulls search for new price discovery.
The AUDUSD pair is bullish while trading above the 0.6880 level, further upside towards the 0.6970 and 0.7020 levels seems possible.
If the AUDUSD pair moves below the 0.6880 level, sellers may test towards the 0.6850 and 0.6800 support levels.