- Heading towards the US Presidential elections precious metals could slip given US lawmakers failure to agree to stimulus.
- Silver prices could move lower after breaking through Symmetrical Triangle support.
- Gold prices capped by former support-turned-resistance. Could more losses be coming?
The failure of Congress to agree to additional fiscal stimulus, rising US – Sino tensions and the lack of monetary stimulus could see gold decline ahead of the US election in November, resulting in gold and silver extending the pullback from their respective monthly highs.
The longer term outlook for Gold remains positive particularly following the Fed’s adoption of average inflation targeting (AIT) and following recent comments from New York Fed President John Williams who insisted that the central bank stands ready to do whatever necessary”.
Even so, the Fed are unlikely to adjust monetary policy just before the US Presidential election.
Congress is also moving its focus to replacing the late Supreme Court Justice Ruth Bader Ginsburg, and still needs to approve a continuing resolution to fund the government before September 30.
The precious metals could move higher in the near-term if US policymakers fail to quench the market’s need for further stimulus.