Gold/Silver Price Technical Outlook
- Gold grinding lower, May 2019 trend-line may still come into play
- Silver outlook a bit clearer with it trending lower below support
Gold Price & Silver Outlook Moderately Bearish
Gold is slowly working its way lower, but not in a decisive manner. It broke the ascending wedge on the 4-hr time-frame, which could still lead it lower but if momentum don’t soon pick up again the power of the pattern may fizzle.
Should gold continue lower, the big line of support to watch is a trend-line rising up from May 2019, which lies around the 1765 mark at this time. This would be a huge test and potentially good spot from a risk/reward perspective for would-be longs.
In the meantime, though, the outlook is a bit muddled and if the upside is to come back into play, a period of consolidation around the 200-day would be constructive for perhaps setting a base that gold can rally higher from.
Gold Daily Chart
Gold 4-hr Chart
Silver price is acting in a more decisive manner than that of gold, with it below trend-line support from November. It is also sitting just off its lowest levels in over three months. If it can’t get into gear here soon, a sideways digestion period is seen as leading towards the late-March low at 23.78.
On the flip-side, if silver is to rally it has some work to do, which is why out of the two major precious metals gold appears to be the better long candidate while silver the better short. Silver will need to mount a rally above the November trend-line, June trend-line, and 200-day MA if it is to turn the bias around.
For now, sticking with the notion that we will see lower levels ahead.
Silver Daily Chart
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
