Gold (XAU) and Silver (XAG) Price Analysis and Charts.
- Gold (XAU) – Will 200-dma bounce hold?
- Silver (XAG) – Lower highs and lower lows.
Gold (XAU) Price Respecting Lower Highs
The price of gold is currently trading just below a series of lower highs initiated off the February 20 peak at $1,346/oz. after bouncing off support from the 200-day moving average on Tuesday this week. The narrowing of the recent trading range may provoke a break-out in the coming days with $1,287/oz, the 61.8% Fibonacci retracement level and this week’s high the first level of resistance. To break the series of lower highs, gold needs to trade above the May 14 high at $1,303/oz, a level that will need a strong fundamental driver to be breached. To the downside, the 200-day moving average is currently around $1,270.5/oz. This technical indicator held and prompted a reversal on Tuesday this week, although the rebound was short-lived. Below here, $1,266/oz. stands in the way of a re-test of 50% Fibonacci retracement at $1,262.8/oz.
Gold (XAU) Daily Price Chart (May 2018 – May 24, 2019)
Silver (XAG) – Bear Channel Still in-Play
Silver bounced off a six-month low at $14.38 earlier this week and pushed marginally higher but the move still looks weak as a new lower low and a lower high were put in place. Silver continues to respect the downtrend and a re-test of this week’s low is possible if bearish momentum continues. Silver has also been respecting the 20-day moving average since late-March, while both the shorter-dated moving averages fell through the longer-dated (200-day) ma recently, adding to bearish sentiment. A break lower would target, $14.05, the November 30 low, psychological support at $14.00 before a full re-trace back to the November 14 low at $13.89.
Silver (XAG) Daily Price Chart (August 2018 - May 24, 2019)
IG Client Sentimentshows that retail traders are 78.8% net-long gold, a bearish contrarian indicator. Recent daily and weekly sentiment shifts however give us a mixed trading bias.
--- Written by Nick Cawley, Market Analyst
To contact Nick, email him at firstname.lastname@example.org
Follow Nick on Twitter @nickcawley1