Never miss a story from Paul Robinson

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from Daily FX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Paul Robinson

You can manage you subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

What’s inside:

  • Silver and gold breaking down
  • Lower parallel breached, looking for break of recent swing low at 17.13
  • Keeping an eye on gold for cues as it is the weaker of the two

Silver prices are in the process of rolling over, with the lower parallel we have been watching as support giving way to sellers in the past few hours. This significantly enhances the odds that the lower high we have been watching develop has been put in place.

Watching gold: It is the weaker of the two precious metals, so interest is high on seeing how it leads to the downside. So far, so good for silver shorts. Gold is breaking down below a more meaningful level of support at the time of this writing. A series of lower highs and flat bottoms (descending wedge) we have been watching unfold suggested it would, but this morning selling through horizontal support at 1275 is providing confirmation. We are looking for a move under 1260 in the short-term, sub-1250 looks probable with a little time.

These developments on the smaller time-frame in precious metals are taking shape following the sharp daily reversals we saw last week from significant overhead levels. It’s a case of the smaller time-frame confirming the larger time-frame.

The break in silver below the lower parallel opens the path up for a move towards and below the 6/16 swing low at 17.13. The expectation is that silver will take out support, leading to another leg lower off last week’s peak before potentially finding good short-term support in the 16.70/16.90 region. Gold is already amidst its next leg lower.

Silver [Gold] 2-hr

Silver Prices Rolling Over, Gold Leading the Way

Sustained trade above the recent swing high at 17.62 will complicate the case for lower prices, while a breakout above 18 will altogether force us to consider alternatives.

Head’s up: Today and tomorrow the Fed Chairwoman – Janet Yellen – will be testifying before Congress, with a start time at 14:00 GMT.

See trader positioning in real-time with SSI.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX, and/or email him directly at instructor@dailyfx.com.