Gold Prices Surge to 6 year High, Silver Prices Eye Resistance Following Breakout
- Gold Prices Soar, Risks Remain Tilted to Further Upside
- Silver Price Outlook | Eyes Topside Resistance Following Breakout
See our quarterly gold forecast to learn what will drive prices throughout Q3!
Gold Prices Soar, Risks Remain Tilted to Further Upside
Gold prices have extended on its bullish uptrend, hitting a fresh 6yr high (highest level since April 2013) as risk off sentiment dictates price action. The latest catalyst stemmed from the rising political unrest within Hong Kong, which in turn saw equity markets head south, while in the EM complex, Argentine assets crashed following the huge upset in the primary election for President Macri. Adding this to the mix of ongoing trade war tensions between the US and China, therefore keeps risks tilted to the upside for the precious metal with the potential for a move towards $1600, particularly as global bond yields continue to drop towards record lows.
GOLD Technical Levels
Resistance 1: $1587 (61.8% Fibonacci Retracement)
Resistance 2: $1600 (Psychological)
Support 1: $1484 (50% Fibonacci Retracement)
Support 2: $1450 (Psychological)
GOLD PRICE CHART: Daily Time-Frame (Sep 2009 - Aug 2019)
Silver Price Outlook | Eyes Topside Resistance Following Breakout
Much like gold prices, silver benefit from risk off flows with prices surging over 2% to hit its highest level since January 2018. Consequently, the precious metal is now eying topside resistance situated at $17.54, which marks the 50% fib level from the 2016 peak to 2018 low.
Silver Price Chart: Daily Timeframe (Sep 2018 – Jul 2019)
GOLD TRADING RESOURCES:
- See our quarterly gold forecast to learn what will drive prices through mid-year!
- Just getting started? See our beginners’ guide for FX traders
- Having trouble with your strategy? Here’s the #1 mistake that traders make
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.firstname.lastname@example.org
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.