Outlook for gold and silver
Gold rocketed from $1275 in the last week of May to re-test the 2019 high of $1346/47, set in February. We reversed from $1348 in the first week of June. I think the four-month-wide double-top is not particularly relevant, because it is too big when compared to the initial seven-month rally.
We bounced from good short-term support at $1320/19 yesterday, from the 38.2% Fibonacci and 200-hour moving average. As I write, prices are trying to push back above the 23.6% Fibonacci and 100-hour moving average at $1330/31, as you can see in the hourly chart below.
Holding what is now support at $1332/30 targets $1337 and minor resistance at $1342/41. The main challenge for bulls is obviously the (potential double-top) high this year at $1346/48. A break higher is a buy signal targeting $1350, $1352/53, $1355/56 and $1360/61.
Failure to hold above $1330 re-targets $1325/24 and a buying opportunity at $1320/18. Long positions need stops below $1316. A break lower targets $1312/11 then an excellent buying opportunity at $1302/1300, with stops below $1297.
The silver chart is harder to decipher with no clear patterns or trends to follow for long trades.
For a more accurate idea of short-term trading levels we look at the intraday charts. Here is the 60-minute chart.
Silver bulls need prices back above $14.72 today to target minor resistance at $14.81/84. Further gains target $14.93/95 and $15.00/05.
A break below $14.60 is a sell signal targeting $14.45/40, perhaps as far as $14.25.
Technical Analyst & Trader
The content of this article is the personal opinion of the author and not Intertrader. You should under no circumstances consider the information and comments provided as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.