Gold, Silver, Platinum – Gold Tests Weekly Lows As China Slips Into Deflation

Key Insights

• Gold pulled back towards the $1915 level as traders reacted to China’s inflation data. 
• Silver declined towards the $22.70 level as the pullback continued. 
• Platinum tested the support at $890.

Gold

Gold remains under pressure as traders worry about deflation in China. The country’s Inflation Rate declined from 0% in June to -0.3% in July, while Producer Prices dropped by 4.4% on a year-over-year basis.

Currently, gold is moving towards the support in the $1900 – $1910 range. A move below the $1900 level will provide gold with a chance to gain additional downside momentum.

Silver

Silver is also losing ground as gold/silver ratio tests multi-week highs at 84.90.

RSI remains in the moderate territory, so there is plenty of room to gain momentum and test the next support in the $22.15 – $22.35 range.

Platinum

Platinum  is trying to settle below the $890 level amid a broad pullback in precious metals markets.

If this attempt is successful, platinum will move towards the next support level, which is located in the $850 – $860 range.

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