Gold & Silver To Break-Down

DailyForex.com Team

By: Bastian Rubben

The US indices continued their amazing rally as NASDAQ reached a new 11-year high with Apple Inc as leading stock. The investors got support from the European stock markets on the first part of the trading day, and later from the FOMC rate statement that sent a calm message regarding the rising of the inflation.

The instruments that are not participating in this party are the precious metals, which have difficulties to recover from the sharp declines that occurred two weeks ago. As you recall, Bernanke has talked about the gold's prices and said that the level of $ 1800 reflected a bubble. This caused immediate heavy selling of the metal that slid down to $1660 points. The short positions holder started to take profits around this support and helped the gold correct to $1720 but then the sellers took the lead and now the gold is approaching the support at $1660 again. It created the "Inverted Cup & Handle" pattern above this support and a strong break-down might take the price down to $1600. However, this support seemed to be strong and therefore the gold might try to rise above $ 1700 again.

Gold Daily 3/14/12

The silver also influenced by Bernanke's speech regarding the gold's prices and this precious metal lost about 13% in less than two weeks. The silver tried to make a significant bullish correction but as it did many times during the past month, it failed in breaking through the resistance at $34. The metal is creating the "Head & Shoulders" pattern above the support at $32.5, and a successful break-down might pull it down to $30. However, yesterday's candlestick indicates that there is a support on the current levels and the silver might try to cross above $34 again.

Silver Daily 3/14/12

DailyForex.com Team
The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.

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