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.

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
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Tune in to @IlyaSpivak 's #webinar at 10:00 PM ET/3:00 AM GMT for insight on the cross-market outlook in the week ahead. Register here: https://t.co/E213bTtq5C https://t.co/Sj2NSgZ4xD
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/MAn2EL32sU
  • In the week ahead, around 25% of S&P 500 companies will release their results, including GE, Johnson & Johnson, 3M, Microsoft, Boeing, AT&T, Facebook, Apple, Tesla, Visa and Amazon. Read more on my earnings outlook report. https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/01/17/Dow-Nasdaq-SP-500-Outlook-Earnings-May-Bring-Positive-Surprises.html
  • Wall Street Futures Update: Dow Jones (+0.20%) S&P 500 (+0.28%) Nasdaq 100 (+0.51%) [delayed] -BBG
  • Nearly 80% of the S&P 500 constituents closed in the red on Friday, dragged by materials (-0.43%), financials (-0.38%) and energy (-0.34%) whereas defensive utilities (+0.20%), real estate (+0.15%) and communication services (+0.02%) outperformed. https://t.co/vf08Fhfvxd
  • Traders focus a lot of their energy on spotting the perfect time to enter a trade. While this is important, it is ultimately where traders choose to exit trades that will determine success. Learn about the three types of trading exit strategies here: https://t.co/muYkTNXH7s https://t.co/fSRW0Z8mNQ
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/RyMqsHehsY
  • RT @GunjanJS: This is pretty wild. Last year, in RECORD year for options, about 30 million contracts traded daily. This year, it’s been mo…
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCZ9dzS https://t.co/KD6mfkiCaW
  • What are some technical and fundamental factors affecting the equities market? Get your free forecast here: https://t.co/YQG1aaIT8C #DailyFXGuides https://t.co/TEoSjMpMBo
Precious Metals Technical Analysis: Gold and Silver Rebound at Hand?

Precious Metals Technical Analysis: Gold and Silver Rebound at Hand?

Daniel Moss, Analyst

Precious Metals, Gold Prices, Silver Prices, XAU/USD, XAG/USD – Talking Points:

  • Gold and silver prices have been under fire since peaking in August
  • However, longer-term price analysis suggests the outlook for both precious metals remains skewed to the topside.
Advertisement

Gold and silver prices have taken a beating in recent weeks, weighed down by resilient economic data, positive vaccine results and the start of the US presidential transition process.

However, this correction lower may prove short-lived as longer-term price analysis suggests a reversal higher could be in the offing.

Gold Prices Weekly Chart – Cup and Handle in Play?

Precious Metals Technical Analysis: Gold and Silver Rebound at Hand?

Gold prices weekly chart created using Tradingview

Gold prices have continued to track lower after failing to gain a firm foothold above key psychological resistance at the 2000 mark.

With the RSI and MACD indicator sliding to their lowest levels since March, the path of least resistance seems to favour the downside.

However, with prices carving out a bullish Cup and Handle pattern and continuing to track firmly above the sentiment-defining 200-week moving average (1495.80), the longer-term outlook remains tilted higher.

Nevertheless, a pullback towards the 50% Fibonacci (1763.27) looks likely in the near term if support at the 61.8% Fibonacci (1812.36) and 1800 level gives way.

Gold Prices Daily Chart – RSI Divergence Hinting at Rebound

Precious Metals Technical Analysis: Gold and Silver Rebound at Hand?

Gold prices daily chart created using Tradingview

Zooming into a daily chart bolsters the bullish outlook depicted on the weekly timeframe, as gold prices hold constructively above the 200-DMA (1799.28) and 1800 level.

Bullish RSI divergence is indicative of fading selling pressure and hints at a reversal higher, if Descending Channel support remains intact.

A daily close back above the 61.8% Fibonacci (1812.36) would probably open the door for prices to challenge the November 9 low (1850.62).

Pushing through that is required to bring channel resistance and the October high (1933.28) into focus.

Alternatively, breaching the 200-DMA could ignite a more extensive correction towards key support at the 50% Fibonacci (1763.27).

Silver Prices Weekly Chart – Bull Pennant Hints at Topside Push

Precious Metals Technical Analysis: Gold and Silver Rebound at Hand?

Silver prices weekly chart created using Tradingview

Silver looks poised to move higher despite falling back below the 21-week moving average (24.57), as prices carve out a Bull Pennant formation.

With the RSI continuing to hold above its respective neutral midpoint, the path of least resistance seems skewed higher.

A weekly close back above 25.00 is likely needed to validate the bullish continuation pattern and generate a push to retest the yearly high (29.86).

Conversely, a weekly close below the 38.2% Fibonacci (22.90) may precipitate further losses and generate a downside push towards psychological support at 20.00.

Silver Prices Daily Chart – Fibonacci Support Holding Firm

Precious Metals Technical Analysis: Gold and Silver Rebound at Hand?

Silver prices daily chart created using Tradingview

Jumping into a daily chart reinforces the bullish tilt seen on higher timeframes, as prices continue to gyrate above the 38.2% Fibonacci (22.90).

Slicing back above the trend-defining 50-DMA (24.28) may propel prices to challenge Bull Pennant resistance, with a daily close above the October high (25.56) needed to bring the yearly high (29.86) into the cross hairs.

On the other hand, a daily close below pennant support and the 22.00 level could result in a pullback towards the 200-DMA (21.74).

-- Written by Daniel Moss, Analyst for DailyFX

Follow me on Twitter @DanielGMoss

Building Confidence in Trading
Building Confidence in Trading
Recommended by Daniel Moss
Building Confidence in Trading
Get My Guide

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

DISCLOSURES