A bearish pin bar formed on the 4 hour silver chart on Wednesday after global equities continued to surge on Tuesday. Pressure is building up in the falling wedge pattern that has developed.
Indications that the U.S. and China are nearing a trade deal after months of negotiation has lifted investor confidence and underpinned stocks. Over the weekend, U.S. Treasury Secretary Steven Mnuchin stated that he hoped US-China trade talks were approaching a final lap. Meanwhile, assets such as silver and gold have been pressured lower as a result of dampened safe haven demand.
On Tuesday, gold fell to fresh lows for 2019. Gold bulls point out that dovish Federal Reserve policy could boost the yellow metal later this year and that central banks have stepped up their gold purchases recently.