Gold Trading Soft, Silver Price Trying to Hold Important Support

Gold Trading Soft, Silver Price Trying to Hold Important Support

Gold & Silver Price Outlook

  • Gold trading near the bottom of a would-be long-term bull-flag
  • Silver price trading on March trend-line, so far holding well

Gold Sitting Soft, Silver Price Trying to Hold Important Support

The price of gold has been soft, but sits at a spot on the chart that may soon act as a low of some type. The underside trend-line of a developing bull-flag lies just beneath yesterday’s minor reversal-day low. It could use a little more thorough of a testing, but perhaps we have seen enough as rarely are things perfect in markets.

A rise from this area or even a little lower could put in yet another pivot to the bull-flag developing since the August peak. Given the size and duration of the pattern it could become a major macro development that eventually sends gold much higher over the long-term.

But in the interim there is still a lot of work to be done before that can become a reality. For short-term traders things are in a bit of limbo as the tone is still weak and support hasn’t been rejected in a meaningful manner. As a result, the general near-term trading bias is seen as neutral.

Gold Forecast

Recommended by Paul Robinson

Check out the Q1 GOLD Forecast

Gold Weekly Chart (budding bull-flag)

gold weekly chart

Gold Daily Chart (watch lower parallel)

gold daily chart

Gold Charts by TradingView

The price action in silver is more interesting, with the metal sitting on the March trend-line. It was a strong source of support in January and with each test it becomes increasingly important. Yesterday’s reversal may do the trick as a successful test.

For this to be the case, price needs to stay above 25.83 on a closing basis. If it does, then the outlook is near-term neutral to bullish. A close below yesterday’s low, though, will open up a path towards lower levels. First up as support on a break will be the lows from January that are in confluence with the rising 200-day currently at 23.97.

From a tactical standpoint, would-be longs may look to lean against yesterday’s low as a potentially solid risk/reward opportunity.

Silver Daily Chart (March trend-line)

silver daily chart

Silver Charts by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

—Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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Originally Posted on: https://www.dailyfx.com/forex/technical/home/analysis/xag-usd/2021/03/03/Gold-Trading-Soft-Silver-Price-Trying-to-Hold-Important-Support-PRtech.html
By: Paul Robinson

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