Following the re-test of mid-2013 levels during last month, Gold and silver prices have gained momentum as lower prices spurred precious metal demand. Earlier in this week, gold prices tested the highest level in six week while in the previous week, silver prices did test the eight weekly high. Following is the technical overview of gold and silver.
- Failure to sustain the six week high pushed gold prices towards testing the lower line of ascending trend channel, which has been in place since later half of December 2013. Gold prices are trading near its 50-day EMA, currently near $1242 level.
- Sustained trading below $1242 can lead the yellow metal towards $1232, $1215 and psychological support level of $1200. A break below $1200 negates the chances of short term up trend by signaling re-test of $1180 levels.
- On the upside, multiple resistance zone $1265 - $1268 continue playing its pivotal role, coinciding 100-day EMA and upper line of ascending trend channel, sustained trading above which can fuel the gold prices towards 50% Fibonacci Retracement Level of its $1433 to $1182 downtrend near $1308. Although, $1278 and psychological level of $1300 can provide intermediate resistances for gold prices.
Gold: Daily Chart
- Silver prices continued trading negative after witnessing the selling session yesterday; it is now trading near $19.81. The white metal’s prices are continuously suppressed by 100-day EMA, currently near $20.59, since November 2013. In the previous week, the white metal rallied to the weekly high near $20.59, although, failure to conquer the strong resistance pushed silver prices towards $19.67 level yesterday.
- From the current level, the metal is expected to continue its downtrend by signaling $19.50 and psychological support of $19.00. A sustained trading below $19 can fuel the silver prices towards 2013 low of $18.20.
- On the upside, 100-day EMA level near $20.59 can continue providing near term strong resistance, breaking which the pair can rally towards $21.65 - $21.80 resistance zone, coinciding 50-day EMA and 50% Fibonacci Retracement Level of its $18.20 - $25.11 uptrend. Although, 61.8% Fibonacci Retracement Level can provide intermediate resistance near $20.85 level.
Silver: Daily Chart
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