Gold is trying a small recovery in oversold conditions
|Gold – Silver
Gold Spot held just a point above strong support at 1685/80 (despite further gains inthe US dollar) where we predicted a low for the day. The bounce hit our targets of1700/01 & 1705/10. We topped exactly here.
Silver Spot we wrote: breaks strong support at 2550/40 to target 2525/15. Furtherlosses look likely eventually to 2475/65...
We hit 2481 but outlook remains negative.
Daily analysis
Gold trying a small recovery in oversold conditions. First resistance at 1705/08 butabove 1710 allows a recovery to 1722/26. Watch for a high for the day. Shorts needstops above 1729.
Holding first resistance at 1705/08 keeps us in a bear trend targeting 1694/90 beforea retest of strong support at 1685/80. A low for the day likely again. A break lowerhowever targets the 100 week moving average at 1650/45.
Silver holding below strong resistance at 2540/50 keeps the outlook negative totarget 2525/15 & 2475/65, eventually as far as 2430/20.
A selling opportunity at 2540/50 with stops above 2575. A break higher meets strongresistance at 2510/20.
Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.