Gold Oversold; Silver To Test Longer-Term Trendline Support

Gold Oversold; Silver To Test Longer-Term Trendline Support

Gold & Silver

Gold & Silver

lower to the next target of 1240/39. Further losses target 1237 and good support at the 200 week moving average at 1233/32.

Gold is so oversold that a recovery is possible in the short term, although I cannot recommend a long without us testing a strong support level. However any gains target 1244 and 1251/52 before quite strong resistance at 1254/55. Silver Spot tests very important longer term trend line support at 1590/80, dipping as far as 1565, but managing to hold above last week’s low at 1562. Yesterday we topped exactly at 1589/90 but above here targets resistance at 1603/06. On further gains look for 1617/18 and strong resistance at 1622/25.

A break below 1540 however favours the bears and targets 2 year trend line support at 1520/10.

(Why?)

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