Gold Is Becoming Bullish, But Silver Remains Neutral

Here is the current outlook on Gold and Silver.

GOLD (XAUUSD)

Dominant Bias: Bullish

The bias on Gold was recently bearish, but the precious metal has been trying to reject further southward move. The effort to reject further southward move became serious throughout last week when the price found a bottom at the support level of 1277.63. Since then, the price has been consolidating to the upside. The ‘upside’ consolidation has become vivid enough to result in a ‘buy’ signal in the chart. The current slight bearish correction is too shallow to be termed as being a threat to the new ‘buy’ signal. The price may rise from here and trend upwards towards the resistance levels at 1350.00 and 1370.00. Should the first resistance level get broken, the price would be able to go towards the next resistance level. The support level at 1277.00 should act as a hurdle to any bearish pull along the way.  

SILVER (XAGUSD)

Dominant Bias: Neutral

The term ‘Neutral’ is used for the dominant bias because it would not be correct to refer to the medium-term bias as being bullish or bearish. The movement in the price so far in this month has been largely flat. However, when a breakout does occur, it may be towards the upside. This market appears weak in recent years, but it sometimes gets positively correlated with Gold. It would be very easy for the price to challenge the supply level at 20.6100; that is when the price breaks out upwards.

Source: www.tallinex.com

Eye-opening trading lessons: Lessons from Expert Traders