Global risk appetite has decreased over the last few days on the back of lacklustre results from the world's largest economies. The recent sharp drop in non-farm payrolls to 38k, coupled with the sharp talk from Mario Draghi earlier today has all had a major impact on the global outlook as of late. Uncertainty is quickly becoming a real thing yet again, more so in the UK where the Brexit has polarised the market over there, and is quickly becoming another weight on the financial markets shoulders when it comes to a positive outlook. So when it comes to certain markets doing well in times like this one can look no further than the precious metal market, which these days can quickly be described as a natural hedge for financial markets in dark times. Obviously, we are not in dark times just yet. In fact what we are now looking at seems to be a large bump in the road for the US economy and for the UK economy, but it does not mean you should discount the precious metal as short to medium term opportunities are abound and the recent volatility is a good example of what is possible.

The obvious standout for volatility has been the silver market, over the last year it has shown time and time again that when it comes to large moves as a percentage it can and frequently does take out that title. Silver market movements have been quite aggressive with the uncertainty and we saw silver push down to support at 15.197 before looking to jump back higher on the back of this uncertainty. With that in mind resistance at 17.308 is currently holding back any further bullish movements, but I would anticipate that we could continue to see silver charge higher on the charts and I would expect the next level to be around 17.836. Any drop back lower is likely to use the 20 day moving average as dynamic support in this instance, as the bulls are looking to take as much control as they can. Also a weak US dollar if it continues will also enable the bulls further free reign to run up the charts.

Gold has also been a stand out mover on the back of uncertainty and the recent rise has bucked the trend of the bearish movements we have seen over the previous years for gold. The market found strong support at 1205.15 and is likely to use this level again if we see a sharp pull back on the chart and the first bullish wave was stronger than silvers, but weaker then after. This is a surprise but shows the attractiveness for silver amongst traders. For resistance the market is now targeting the upper level at 1279, but anything above this will struggle unless we see some tangible data out that shows the economy is slowing or that the Brexit is a real thing which is going to weigh on markets in the short term.

 

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