Gold Price and Silver Price Forecast for the Days Ahead
Gold/Silver Technical Outlook:
- Gold rising off lows after sharp pullback, but can it continue?
- Silver has held up better than gold, and may continue to lead
Earlier in the month gold spiked and reversed from just below the record high at 2075, this has brought in some doubt about the trend higher. But overall the long-term trend remains pointed upward and will take quite a bit more downside to snap the trend.
With that in mind, general forces appear to be in favor of higher prices, but how long with that take to materialize? The low from the recent decline developed around the June 2021 high, with a sharp reversal day occurring after breaking down through.
The recent low at 1895 will be used as a short to intermediate-term guide. Right now on the top-side, gold is struggling with a pair of highs from 2020 into 2021. We saw a sharp upward reversal on March 11 from around these levels. That reversal day helped validate the near-term impact of those levels from well over a year ago.
A period of digestion between support and resistance may be needed before gold can grow legs. A clean breakout above 1965 should have the trend looking to really reassert itself back towards the record highs.
Gold Daily Chart
Silver is holding firmer than gold and may be set to lead the way higher. So far we have seen silver hold the high from January. The low from earlier in the month at 24.47 will be the line-in-the-sand on the downside. Some more horizontal work may do some good here, with an eventual breakout above 26.94 needed to really get things rolling higher. Staying within the confines of the channel dating to early this year will be key too.
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.