Skip to Content
News & Analysis at your fingertips.
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 Rally Could Grow Legs on Long-term Trend-line Break, Silver to Follow

Gold Rally Could Grow Legs on Long-term Trend-line Break, Silver to Follow

What's on this page

Gold/Silver Highlights:

  • Gold threatening to break key long-term trend-line
  • Weekly close above will be needed to qualify as a sound breakout
  • Silver has resistance, but will follow gold

To view the longer-term technical and fundamental outlook for Gold, or to see our top trade ideas for 2018, check out the DailyFX Trading Guides.

Gold threatening to break key long-term trend-line

Late last month, gold was rejected from the 2013 trend-line in fairly swift fashion. This warranted a neutral to bearish outlook on the precious metal since, but with yesterday’s surge the trend-line is under fire again.

There remains time on the clock before the week concludes, so gold may yet prove to falter again at this big threshold, but if it can close the week firmly above, preferably above 1366 too, a broader advance could get underway.

There are levels not far beyond which could be problematic, but with the long-term trend-line in the rear-view mirror it seems likely there will be enough momentum to carry gold through 1375 to 1400 and higher. A turn back down around current levels would keep a bullish bias at bay.

For gold sentiment among traders, check out the IG Client Sentiment page.

Gold Weekly Chart

gold weekly price chart, 2013 trend-line threatened again

Silver has resistance to clear, but will follow gold

Silver has been the laggard of the two major precious metals, but if gold breaks beyond the aforementioned threshold it will likely take out its own set of resistance levels. There is a trend-line from the July spike-high to first hurdle, then 17.70 before momentum is seen to carry silver to higher ground. Big-picture, silver has been coiling up since 2016 (between ‘03/’16 trend-lines), implying a big move could soon be near.

It’s all about gold for now, though, if it can’t clear on a weekly closing basis then we’ll have to tap the brake on an upward bias. Should gold get rejected again from the 2013 trend-line look for silver to continue as a leader on the downside.

Silver Weekly Chart

silver weekly price chart, coiling up, to follow gold

Trader Resources

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

To receive Paul’s analysis directly via email, please SIGN UP HERE

You can follow Paul on Twitter at @PaulRobinsonFX

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