Gold Becomes Bullish, and Silver to Follow Suit

GOLD (XAUUSD)

Dominant Bias: Bullish  

As it was expected, the trend on Gold has turned bullish – with a Bullish Confirmation Pattern in the market. The recent bearish bias drove the price as low as the demand level at 1183.00. That demand level was tested vigorously before further downward plunge was rejected, and since then, the price has moved upwards vigorously, rejecting bearish pulls along the way. Since early October 2014, the price has moved upwards by over 6600 points. It is no longer logical to seek short trades in this market, and buyers would do well to buy on dips, buying when things are temporarily on sale and in the context of the uptrend. This bullish trend may possibly continue for the rest of the year 2014, as dips along the way offer new opportunities to open long trades. Gold may soon reach the supply level at 1270.00.

SILVER (XAGUSD)

Dominant Bias: Bullish  

The bias on Silver is also bullish, but the upwards trend in the market is much weaker when compare to the upward trend on Gold. When both Gold and Silver was bearish, the downwards move on the latter was stronger and more furious than the downward move on the former. Now that things have gone bullish, the upward move on Gold is far stronger and more determined that the upward move on Silver. In fact, Silver has been in a kind of consolidation, but when a breakout does occur, it is more likely that it would be to the upside. The price may then reach the resistance level at 18.0000, even going above it.  

Source: www.tallinex.com

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