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Gold Price Turning Positive, Silver Price Eyes Fresh Highs

Gold Price Turning Positive, Silver Price Eyes Fresh Highs

Nick Cawley, Senior Strategist


What's on this page

Gold (XAU) Price, Silver (XAG) Price Analysis and Chart

  • Gold looks to press ahead with a new high the target.
  • Silver formation looking positive.

Q3 2019 Gold Forecast and Top Trading Opportunities

Gold Benefitting from a Risk On Backdrop

Gold’s recent correction lower after having printed a six-and-a-half-year high looks to have run its course and the precious metal may turn higher again. A risk-off backdrop has given gold a boost, while on the charts the metal is nearing bullish levels on the CCI indicator. The ongoing US-China trade spat shows no signs of easing, while US President Trump is also setting his cross-hairs on Europe and will likely act, especially with the Euro at such a low level. However, the strength of the US dollar is currently acting as a brake on any further upside, although bond yields continue to fade lower.

US Dollar Daily Chart (December 2018 – September 3, 2019)

Initial support for gold is the 20-day moving average at $1,520.00/oz. ahead of $1,517.00/ozbefore a layer of support levels between $1,492/oz. and $1,500.00/oz. cut in. To the upside, $1,535.00/oz before the recent multi-year high at $1,555.20/oz.

Gold Price Daily Chart (February – September 3, 2019)

IG Client Sentiment data show that 64.5% of retail traders are net-long of gold, a bearish contrarian indicator. However, recent daily and weekly positional changes give us a stronger bearish contrarian trading bias.

How to Trade Gold: Top Gold Trading Strategies and Tips

Silver Showing Signs of a Bullish Pennant Set-Up

Silver’s recent run up to multi-month highs has also slowed but recent price action suggests a bullish flag formation may be forming which, if completed, could see silver threatened the $20.00/oz. level ahead of the July 2016 high at just over $21.00/oz. All three moving averages remain supportive while the CCI indicator is drifting back out of overbought territory. There are recent support levels between $18.05/oz. and $18.35/oz. that should prove resilient.

The gold/silver ratio is currently 82.66.

Silver Daily Price Chart (February – September 3, 2019)

How to Trade Silver: Top Trading Strategies

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on Gold and Silver – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at or via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.