Gold Spot buy signal took us to 1773 & minor resistance at 1778/80 but we topped exactly here. Longs at best support at 1764/62 worked perfectly for the rest of the day offering up to 12 points profit with several bounces.
The negative candle in overbought conditions means we are likely to trade sideways to lower. However a big sell off is unlikely at this stage.
Silver Spot unexpectedly crashed from the 1800/10 target breaking strong support at 1765/55. We remain in a difficult sideways trend.
Today's Analysis
Gold best support at 1764/62 worked perfectly yesterday. Longs need stops below 1758. A unexpected break lower targets 1754/53. Further losses risk a retest of strong support at 1744/42. Longs need stops below 1738.
Longs at 1762/64 re-target 1768/69, 1773, & 1778/80. Further gains meet key resistance at 1784/86. It is worth trying shorts with stops above 1791. A break higher is a strong buy signal despite overbought conditions.
Silver we can only try to scalp the following levels for a 15 point profit with a 5 point stop loss.
1730/35, 1763/65, 1774/77, 1800/05.
Trends
Weekly outlook is positive.
Daily outlook is neutral.
Short Term outlook is positive.
The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0750 to start the week
EUR/USD trades in positive territory above 1.0750 in the European session on Monday. The US Dollar struggles to find demand following Friday's disappointing labor market data and helps the pair hold its ground.
GBP/USD edges higher toward 1.2600
Following Friday's volatile action, GBP/USD pushes higher toward 1.2600 on Monday. Soft April jobs report from the US and the modest improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold rebounds above $2,310 after downbeat NFP data, eyes on Fedspeak
Gold price trades in positive territory above $2,310 after closing the previous week in the red. The weaker-than-expected US employment data have boosted the odds of a September Fed rate cut, hurting the USD and helping XAU/USD find support.
Addressing the crypto investor dilemma: To invest or not? Premium
Bitcoin price trades around $63,000 with no directional bias. The consolidation has pushed crypto investors into a state of uncertainty. Investors can expect a bullish directional bias above $70,000 and a bearish one below $50,000.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.