Gold Price Struggles, Silver Continues to Test Noted Support
Gold and Silver Price Analysis and Charts.
- Gold struggles as the US dollar remains firm.
- Silver – bulls and bears continue to trade blows around the 200-day ma.
Gold Nears Strong Support Levels
Gold remains under pressure and below a previous support zone between $1,26.8/oz and $1,280.9/oz that broke at the end of last week. The market fundamentals should provide gold with a mild bid as US President Trump ramps up the pressure on Iran by ending the current oil waivers, while the US dollar continues to trade at elevated levels and is susceptible to a sell-off, especially with the first look at US Q1 GDP at the end of the week. Gold should find strong support between $1,262/oz and $1,259/oz, the 50% Fibonacci retracement level and the 200-day moving average respectively. A break above $1,280.9/oz leaves $1,287/oz the first target. The chart continues to highlight lower highs since February 20, while the CCI indicator continues to point to an oversold market.
Gold Daily Price Chart (May 2018 – April 23, 2019)
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Silver – Supported by the 20-Day Moving Average
Silver continues to test the 200-day moving average, an indicator that has been under pressure since early April. The indicator, currently at $14.96/oz has been broken but not closed below, adding short-term credibility to its support. If we do break and close below, the 23.6% Fibonacci retracement at $14,91/oz will come into play before the April 15 low at $14.85/oz. The CCI indicator shows the metal just moving out of oversold territory.
Silver Daily Price Chart (July 2018 – April 23, 2019)
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--- Written by Nick Cawley, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.