Gold: 1970 is the better selling opportunity this week

Gold – Silver

Gold Spot in a volatile sideways consolidation exactly as predicted many days ago, making holding longs risky at this stage despite the longer term bull trend. There are risks of a further correction to the downside.

Initially we held below 1925/20 for a sell signal targeting 1902/00 & bottomed exactly here. An unexpectedly strong recovery shot higher through 1930 to the next target & resistance at 1951/53. We topped exactly here. Outlook remains erratic & volatile.

I would only consider medium term long positions again on a break above 1980.

Silver Spot also in an erratic, volatile sideways trend & likely to remain difficult to trade.

Daily Analysis

Gold holding minor resistance at 1951/53 in the sideways trend targets 1935/33, perhaps as far as minor support at 1928/26. If we continue lower look for 1921 & 1914/12. Further losses retest 1902/00. A break lower targets 1193/92 & perhaps as far as 1884/82.

Resistance at 1951/53. Strongest resistance at 1970/75 today is the better selling opportunity this week. Shorts need stops above 1980. A break higher is more positive initially targeting 1990 & 1996/98.

Silver holding first support at 2705/00 re-targets resistance at 2735/40. Unlikely but further gains retest last week's high at 2760/70.

Holding below 2690 retests minor support at 2672/70. Better support at 2643/40.

Longs need stops below 2630 for 2605/00, perhaps as far as 2575/70. A break below 2560 risks a slide to 2510, perhaps as far as support at 2485/75.

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