Today is an unusual session for the markets following a chaotic day yesterday.
Participants cannot be blamed for the current uncertainty; we are now in the aftermath of a series of decisions made by major Central Banks. Fundamentals are inconsistent, leading to a widespread sense of confusion across all asset classes, resulting in a slow consolidation.
Given that many of the world’s most educated economists, like the Federal Reserve Chairman Jerome Powell and other Central Bankers, seemingly struggle to understand the ongoing situation, it will be challenging to predict the market’s direction once the uncertainty lifts.
Metals are not immune to this confusion, especially after experiencing volatile 10% swings up and down yesterday – They are today, however, experiencing a relatively calmer session: Silver is up a shy 1%, Gold retreats from $4,400 and other Metals like Platinum are hanging close to unchaged.
In general, after periods of significant volatility and a lull in news, the markets tend to trade within a range. This is precisely what we are witnessing today.
The best approach now is to take a step back and prepare for what lies ahead. These types of sessions offer key breakout levels, as algos and traders await news to catalyze the next movement in the markets.
Let’s explore the recent shifts in an intraday timeframe analysis of Gold (XAU/USD) and Silver (XAG/USD) to identify where are the key levels to watch for breakouts.
