Gold & Silver Price Analysis: XAU In a Fight at Significant Resistance
Gold/Silver Price Technical Outlook
- Gold is holding steady around a key intersection of resistance
- Silver continues to channel its way higher, yet to reach substantial resistance
Gold & Silver Price Analysis: XAU In a Fight at Resistance
Gold tagged the top of a broad channel dating to August earlier in the week, a line that lies in almost exact confluence with the 200-day moving average. The initial pullback wasn’t to be unexpected given the significance of resistance.
What we will want to see now is whether gold can soon take out resistance. A strong breakout above could have significant long-term ramifications a it could mark the end of a long corrective period within the context of a major bull market.
If this is the case, then the trading bias would flip to the long-side for the foreseeable future as the old high at 2075 and higher becomes targeted. This of course wouldn’t happen all in one big swift move, but could present some good trading.
In the event gold continues to stay within the confines of the channel, then the upside will obviously be kept in check. The trend-line off the late March low is first up as support along with the top of a small range that checks in just under 1800.
Gold Daily Chart (big spot on the chart here)
Silver isn’t at a crossroad of similar magnitude as to the one gold is at, but if precious metals continue to trade higher XAG/USD will have some significant levels to contend with between ~28.30 and 30. For now the focus is on the rising channel off the late March low.
Stay above the lower parallel and the trading bias remains focused on the long-side. It will take a breakdown below the lower parallel and horizontal support around 26.64 to shift the focus lower towards the 200-day and trend-line off the March 2020 low.
Silver Daily Chart (channeling higher)
Resources for Forex 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.