Gold Price Rebound Under Threat, Silver Battles Conflicting Signals
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Gold and Silver Price Analysis and Charts.
- Gold’s recent pull-back has come to a halt ahead of a week packed full of risk events.
- Silver caught between trend and 200-day moving average.
Gold Fades Lower but Risk Lies Ahead
Gold sits just above an important support zone as it tries to keep gains made last week. While the short-term chart pattern remains bearish, with lower highs and lower lows seen since February 20, the week is full of high-risk events and data releases which may help to underpin gold at its current levels.
The daily chart shows gold nearing the $1,276 - $1,281/oz zone that acted as minor resistance last week. The upper band of this zone should now act as first, minor, support before $1,276/oz and $1,266/oz come into play. To the upside, 61.8% Fibonacci retracement at $1,287/oz is the first target for bullish traders followed shortly after by $1,289/oz. The CCI indicator shows gold mid-market, neither overbought or oversold.
Gold Daily Price Chart (May 2018 – April 29, 2019)
IG Client Sentiment shows that retail traders are 73.0% net-long gold, a bearish contrarian indicator. However, recent daily and weekly sentiment shifts suggest that the current gold trend may reverse higher.
Silver – 200-DMA Battles Bearish Bias.
Silver remains just above $15.03/oz with minor support seen at the physiological $15.00/oz before slightly more meaningful support from the 200-day moving average, currently at $14.97/oz. The longer-dated ma has provoked supportive price in the last month and may turn to resistance if a fresh break and close below occurs. Below here 23.6% Fibonacci retracement at $14.91/oz. Silver has broken – is currently trading above – the downtrend line based off the February 20 high, and a clean break and close above may bring open the way to $15.09 - $15.11/oz in the short-term. The last swing high at $15.34/oz remains the next target.
Silver Daily Price Chart (August 2018 – April 29, 2019)
IG Client Sentiment shows how retail traders are positioned in a wide range of currencies, commodities and cryptocurrencies. See how recent changes in positioning affect our trading bias.
--- Written by Nick Cawley, Market Analyst
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