- Silver is outperforming Gold, so traders should be more confident of being long of Silver than of Gold.
- The best new trade opportunity which might set up today will be a long trade in Silver from the $27.50 area.
- Stock markets are mostly holding up, which is probably good news for further rises in Gold and Silver.
Gold (XAU/USD): Technical Analysis
Gold is still established within a long-term bullish trend despite retreating from its record high made just a few weeks ago. Bulls still need caution as the price is not trading in blue sky and is prone to hitting resistance and swinging lower. In fact, it is fair to say that we are seeing a consolidation within an increasingly narrow range, with both nearest support and resistance levels looking likely to produce rejections when tested, giving potential short-term trading opportunities.
A few hours ago, the price made what seems to be a significant bearish reversal at the resistance level at $2321. The price looks quite likely to fall further to $2305 where a long trade could be possible. If any rejection also rejects that round number at $2300 it will likely be even stronger.
Any long trade could easily run out of momentum near $2321 so be conservative with taking profits from any long trade – monitor it carefully.
Key Support Levels:
- $2305
- $2290
Key Resistance Levels:
- $2321
- $2329
Silver (XAG/USD): Technical Analysis
The price chart below shows that Silver is still established within a long-term bullish trend despite retreating from its multi-year high made just a few weeks ago. Recent hours have seen a significant bullish development: a bullish breakout above the resistance level confluent with the major quarter-number at $27.50.
A few hours ago, the price made a bearish reversal at the resistance level at $27.73. However, this does not look technical significant, and I would not be surprised if the price rises again to get established above that level.
A long trade here in Silver could be a great idea if we get a bullish bounce anywhere between $27.50 and $27.46, as this area was formerly well-established resistance so is likely now to act as strong support.
I see Silver as a better potential buy opportunity than Gold right now, but more conservative traders might prefer to wait for a bullish breakout above $27.75 instead of buying on the dip after a bounce near $27.50 or even lower.
Key Support Levels:
- $27.50/46
- $27.00
- $26.84
- $26.62
Key Resistance Levels:
- $27.73
- $28.05
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