Back to Blog

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.

Click to expand image

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.

Click to expand image

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.

Click to expand image

For a more accurate idea of short-term trading levels we look at the intraday charts. Here is the 60-minute chart.

Click to expand image

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.

Jason Sen

Technical Analyst & Trader

For more information and trading education visit Intertrader

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.

Share this post

Back to Blog

Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading these products with this provider.
You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money.