Gold & Silver Price Outlook: Watch Support Just Below
Gold & Silver Technical Outlook:
Gold has been trading lower with rates and dollar strength raging on, but the decline could come to an end soon, at least for a bounce. There is good support not far below via a pair of technical thresholds that are in confluence.
The 200-day moving average is at 1836 and starting to level off. Just beneath that point is a trend-line from the August 2021 low, when a mini-flash crash even occurred. The trend-line lies around roughly 1830.
A run through the 200-day that sees price reverse from trend support to close on a daily basis back above the 200 could make for an interesting counter-trend opportunity for would-be longs. For shorts, it could be a signal to cut back on exposure or employ a trailing stop strategy.
Gold (GC) Daily Chart
Silver continues to lead the way lower, but like gold it also has important support just below. The low created in late 2020 at 21.81 is at risk of getting breached, but not far below at 21.41 lies a double bottom effort from last year.
A tag and reverse from support or a run through and reversal (even better) could lead to a rally in the days ahead. The rally would initially be viewed as countertrend in nature, but given the nature of silver it could be a powerful upside move in fairly short order.
A breakdown below support would turn that current floor into a ceiling to watch on a bounce. For now, though, looking at it through the lens of support until proven otherwise.
Silver (SI) 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.