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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/8p6STxmVC6
  • Spooz sub 50-DMA again. There’s been some selling overnight during the European sessions yesterday and today. Sure hope this doesn’t shape up into a H&S topping pattern, but has anyone else noticed lower highs and lower lows forming? 👀 $SPX $ES #SP500 https://t.co/Bf3Icn2T2H https://t.co/vf8jgtVstk
  • PBoC Governor - PBoC has the conditions in place to maintain a normal and rising yield curve - Sees no need to purchase assets now
  • Not today I’m afraid. I’m on holiday in Ventnor in the lovely Isle of Wight https://t.co/iIm6hBksLs
  • ECB's Villeroy - Inflation forecast justifies keeping loose ECB policy
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/T2Lg516oCq
  • Join @MartinSEssex at 5:30 EST/9:30 GMT for a webinar on trading sentiment. Register here: https://t.co/CX9djlHnWK https://t.co/wyMaa9BPYk
  • Japan PM Suga - To lift Covid state of emergency in all regions at the end of the month $JPY
  • Reminder that the 21st OPEC and non-OPEC Ministerial Meeting is scheduled for October 4th
  • Vitol says OPEC+ may need to raise oil output more than expected #OOTT
Gold Price and Silver Outlook Dented by Wall of Resistance

Gold Price and Silver Outlook Dented by Wall of Resistance

Paul Robinson, Strategist

Gold Price & Silver Technical Outlook:

  • Gold price struggling as expected
  • Strong surge needed for a macro-breakout
  • Silver outlook hinges on the next move in gold

For forecasts, educational content, and more, check out the DailyFX Trading Guides page.

Gold price struggling as expected

Last week, gold rallied strongly into a major zone of resistance, measuring from the February peak at 1347 up to the July 2016 high at 1375. The macro-wedge has a top-side trend-line running over from 2014, with several important connecting points making the zone ahead quite formidable.

With that in mind the pullback in gold price to start the week came as no surprise. The question is whether it can garner the strength to push on through the aforementioned levels and spark a lasting macro-breakout that could have gold running for the foreseeable future.

In the near-term there may be more problems. Following the initial pullback we are seeing another push higher this morning that could result in a short-term lower high and a dip below yesterday’s low at 1320. How aggressive sellers become in this scenario will be noteworthy.

A modest pullback or failure to trade below this week’s current low could lead to a consolidation pattern from which gold can attempt to make another break of resistance. However, if sellers show up in earnest soon, then we may again be in the process of the seeing the long-term wedge further tighten up.

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 and currencies.

Gold Prices Daily Chart (consolidate or lower-high?)

Gold Price and Silver Outlook Dented by Wall of Resistance

Gold Prices Weekly Chart (1375+ needed for macro-breakout)

Gold Price and Silver Outlook Dented by Wall of Resistance

Silver outlook hinges on the next move in gold

Silver is a tough handle, nothing new on that front. Sometimes it trades well, often times it doesn’t. How it goes moving forward will depend on how resistance is handled in gold. A lower-high below 15.14 could be in the works, and if so that puts silver at risk of trading back near the May low on a break of the weekly low at 14.64, even if gold only declines only modestly.

Silver’s tendency has been to decline more rapidly than it rises relative to gold, relative weakness that has been in place for a long time and could very well continue for a long-time to come.

Silver Price Daily Chart

Gold Price and Silver Outlook Dented by Wall of Resistance

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.

DISCLOSURES