Watch How Gold Closes the Week, Silver Too
Gold/silver technical highlights:
- Gold continues to struggle around the 2013 trend-line
- Silver remains the laggard, resistance keeps a lid on it
For a longer-term fundamental and technical outlook on Gold or any of your favorite markets/currency pairs, check out the DailyFX 2Q Forecasts.
Gold continues to struggle around the 2013 trend-line
The theme of gold strength only lasting a day or two above the 2013 trend-line continues to remain in place, with Wednesday’s spike to the top of the trading range finding strong opposition. Yesterday’s decline has gold back below the long-term trend-line, and unless it can rally a solid 1%+ from current levels to finish out the week above the threshold, an upward bias will be kept in check heading into next week.
Should we see gold hold below the 2013 trend-line into the close of today (anything is possible, could see another spike on headlines), immediately coming into play is the trend-line from December which held last week. A break below there will have the bottom of the ongoing range back in focus down in the vicinity of 1310/1302.
In the event we see gold shoot higher again today, and close strongly for the week, then attention will turn higher towards a range breakout and the beginning of what could be a sizable rally well into the 1400s and higher. The bottom line is, until we see price move away from the chop, trading is likely to remain challenging.
Traders remain long gold, check out the IG Client Sentiment page to see how this acts as a contrarian indicator.
Gold Weekly Chart (2013 trend-line formidable)
Gold Daily Chart (Range remains)
Silver remains the laggard, resistance keeps a lid on it
Silver continues to lag behind gold, remaining stuck in a downward descending channel below significant resistance in the 16.80/17-area. Should gold fold, look for silver to quickly drop towards the July trend-line, or worse.
A strong push into the 17s is needed to turn the picture bullish. This would likely be accompanied by a breakout in gold above the 2013 trend-line and Jan-current range.
Silver Daily Chart (Resistance keeping upside in check)
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.