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Gold Price Outlook: XAU/USD, XAG/USD Defeated by Dollar Strength

Gold Price Outlook: XAU/USD, XAG/USD Defeated by Dollar Strength

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Gold Price, Silver Price Weekly Technical Outlook:

  • Gold price (XAU/USD) drops below major support, threatening to make way toward $1,800.
  • Silver price (XAG/USD) eases below 200-day MA (moving average, progressing to $21.00.
  • CCI (commodity channel index) remains in oversold territory. Can prices break the persistent downtrend?
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Gold Price Outlook:

Gold prices have been under pressure this week, suffering from the prospects of higher rates and a stronger US Dollar.

With four consecutive weeks of declines attributing to the precious metal’s move, a break of prior support at $1,830 has assisted in driving prices lower.

While Gold futures remain vulnerable to a stronger greenback, the 50-week MA (moving average) has formed an additional layer of support at $1,808.

As technical levels highlight the pressure that has been placed on the commodity over the past month, the CCI (commodity channel) continues to suggest that the safe-haven asset may be oversold.

Gold Price Chart (GC1!) - Daily

Chart  Description automatically generated

Chart prepared byTammy Da Costausing TradingView

For the bear trend to gain traction, a break below $1,800 could allow fuel the momentum of the downtrend, pushing prices toward the next zone of technical significance at $1,790.

Silver Price Outlook

Following their major counterpart, Silver futures have fallen to trendline support, at the key psychological level of $21.00. With the CCI also testing oversold territory, the formation of a doji candle on the daily chart is indicative of indecision. With prices currently testing the 200-day MA at $21,22, a move lower and a breach of $21.00 could assist in facilitating a move lower, bringing the mid-point of the 2020 – 2021 move back into play at $20.90.

Silver Price Chart (Daily)

Chart, histogram  Description automatically generated

Chart prepared byTammy Da Costausing TradingView

Silver Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 1% -14% -3%
Weekly 7% -14% 2%
What does it mean for price action?
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--- Written by Tammy Da Costa, Market Writer for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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