China’s Trade Slowdown Could Impact the Metals Industry
Gold prices declined slightly in early US trading on Wednesday after weak economic data came out of China, signaling a slowdown in the global economy. China’s exports fell by 7.5% while imports saw a year-on-year decline of 4.5%, albeit less than the forecasted 8.1%. The report suggests that China’s economy is sputtering amidst major central banks tightening their policies. This could have negative implications for raw commodities, including metals.
The technical analysis shows that gold futures have a near-term advantage, with $2,000.00 being the next upside objective. Silver bulls and bears are currently on a level playing field, with the next upside objective being closing July futures above solid technical resistance at $25.00.
