Gold Price and Silver Forecast: XAU Outlook Cloudy, XAG Chart Clear
Gold/Silver Technical Outlook:
• Gold price neither here nor there, in ‘wait-and-see’ mode
• Silver chart shows clear trend and levels
Once gold underwent a mini flash-crash and bounced the outlook became uncertain, which is often the case after these rare events occur. The thinking is we will continue to see price sag from here, but confidence in this outlook is weak at best.
At this juncture, some horizontal price action may be the best scenario for creating an opportunity. Through a sideways meander a range could develop that provides levels to work with for a breakout scenario.
Should we see gold continue to trade higher above the trend-line from the June high and the 200-day moving average, the most recent barrier, then the next set of resistance levels arrive at the July/August highs around 1832/34. At that point we would be on the watch for some volatility to indicate whether it will be a barrier of meaning or not.
For now, in wait-and-see mode…
Gold Daily Chart
Silver has been steadily trending lower since May, and thus far the trend hasn’t shown too many signs of letting up. The aftermath of the mini flash-crash has not played out as one might expect, especially given how far gold bounced.
Weak price action has kept the path lower intact along with silver respecting resistance levels via lows from back in March (23.78) and January (24.06). The generally sideways movement suggests we may soon see another leg down.
Even if we were to see resistance broken, the trend will remain lower and within the confines of a channel. It will take a fair amount of work to turn the outlook from neutral/bearish to bullish.
Silver Daily Chart
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---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.