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 Outlook – Rallying into Resistance, Watch How They React

Gold & Silver Price Outlook – Rallying into Resistance, Watch How They React

What's on this page

Gold/Silver Technical Highlights:

  • Gold trading into resistance, watch how it reacts
  • Silver has been stronger, but same technical headwinds

See what drivers DailyFX analysts expect to move Gold in the coming weeks in the Gold Forecast.

Gold trading into resistance, watch how it reacts

Since getting smacked down off last month’s high, gold remains at risk of continuing lower, which is why the current rally remains viewed as only a bounce and not the beginning of another leg higher. This view could of course be wrong which is why as levels get tested paying attention to price action can be quite helpful.

Yesterday, gold snuck above the upper parallel belonging to a channel dating back to the summer, but not in a strongly convincing manner. Adding further weight on gold is the fact it is trading at steady price resistance just over 1300. How it reacts here could be defining for those looking to initiate fresh shorts.

A convincing turn down here may offer up a reason to sell and provide a backstop (stops placed above resistance). The thinking remains that another leg lower will develop, with the lower parallel of the channel, currently in the 1250s, at some point down the line.

A breakout above resistance will force a neutral view at the least, if not bullish if the aforementioned resistance levels turn into sources of support. More on that later should this become the case…

Check out the IG Client Sentiment page to see how changes in trader positioning can help signal the next price move in gold and other major markets.

Gold Daily Chart (Trading at resistance)

gold price chart, trading at resistance

Silver has been stronger, but same technical headwinds

Silver has been stronger recently, a fairly uncommon occurrence between the two major precious metals. This has gold turned into the preferred short for now, but silver obviously has similar headwinds as gold. The Feb 14 low could turn the current bounce lower, bringing trend-line support from November and the top of a range from last year into play.

Furthermore, a complex two-headed head-and-shoulders pattern could be developing, with the current bounce acting as the right shoulder of the pattern. Of course, we will need to see it turn down and eventually break the neckline located around the aforementioned support levels before calling it a valid H&S formation, but certainly a possibility worthy of keeping on the backburner…

Silver Daily Chart (Resistance, H&S pattern?)

Silver daily chart, resistance...H&S pattern?

Resources for Forex & CFD Traders

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

You can follow Paul on Twitter at @PaulRobinsonFX

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