Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Gold & Silver Price Analysis Paints a Pair of Possibilities

Gold & Silver Price Analysis Paints a Pair of Possibilities

What’s inside:

  • Gold & silver prices declining in a slow manner, potentially bullish pattern developing
  • Descending wedges in both are coming into view, but need to first be validated
  • Until then, we must respect the bearish downward price sequence currently in place

What is expected to drive Precious Metals into year-end? To find out, check out the DailyFX Q4 Forecast.

Last week, when we looked at precious metals we painted a bearish picture, with focus on targets of 1260-ish for gold and low-16s for silver. They are slowly grinding in that direction, but have a possible bullish alternate path to be considered.

Starting with the weaker of the pair – gold – it’s not too far away from reaching the confluence of support surrounding 1260 our focus has been on. Yesterday, in the weekly commodities/indices webinar we discussed it as an initial target for this current leg lower from over 1300. There are three points of interest around 1260 – December trend-line, 200-day MA, and the monthly low at 1260.8. The alternate path here, just as we’ll look at with silver, is a descending wedge which could hold bullish implications. If it comes to pass, it would also be taking shape at a trend-line off the July low.

It’s only a scenario until price action corroborates the pattern. That is, a breakout above the top-side trend-line needs to take place to bring this into the light. There would likely be a struggle upon approach of 1296+, but the pattern breakout could at least offer up a bounce until resistance is met. But as long as sequence of of lower lows, lower highs maintains we will continue to run with a lower bias.

Gold: Daily


Check out these tips for Building Confidence in Trading.

Silver has been holding up a bit better than gold, it's not even near the low-16s we’ve been targeting. It could still get there with a little time, but the bullish descending wedge alternative is one worthy of consideration. No different than gold, it will first need to take out the top-side trend-line of the wedge before it will be validated. Until then downward sequence in price action needs to be respected.

Silver: 4-hr

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing up here.

You can follow Paul on Twitter at @PaulRobinonFX.

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