Gold and silver rise as dollar fails to hold gains.
13 August 2021
Precious metals were trading higher, with gold erasing all of this week's losses as it was attacking the 1,760 USD resistance, forming a large weekly bullish pin bar.
If the pin bar is confirmed next week, it could produce a strong rally for the bullion. On the other hand, silver remains depressed, and the weekly candle shows no signs of a reversal bar.
On Thursday, the producer price index (PPI) grew 1% month-on-month in July, up 7.8% on the year, the largest annual increase in more than a decade. However, the US dollar failed to hold gains after the data, and yields also fell, suggesting the spiking inflation might be already priced in.
Later today, August's Michigan consumer sentiment index is expected to stay unchanged at 81.2, most likely not causing any movements in the financial markets.
Fridays tend to be positive for US stocks, and indices are somewhat higher during the London session.
Oil still trades above the key short-term support at 65.20 USD. Thus, the outlook remains bullish for the commodity.