Precious metals build on recent gains

Summary:

• Gold moves up to highest level in a month

• Price back in prior resistance zone

• Silver looking for 2nd daily gain: +1.5%

There’s been steady gains for both Gold and Silver in recent trade with the precious metals benefitting from a slide in the greenback. The price of Gold has moved up to its highest level since October and has revisited the prior resistance zone from 1237-1244. This region capped the advance seen in early October and could now be seen as a key level to watch going forward.  

Gold has moved up to its highest level in over a month today with the market back in the prior resistance zone from 1237-1244. How price reacts here could be key going forward. Source: xStation

Silver oftens exhibits a close relationship to Gold, and we’ve also seen some gains here this week with the market currently trading higher by more than 1.5%. Yesterday saw a strong push to the upside early on, but this faded out and the long wick above the D1 candle didn’t look to positive. However, today price has taken out the Monday high and with the 8 EMA on the verge of printing a bullish cross above the 21 EMA the trend could be seen as being close to turning higher.

14.95 remains a significant hurdle for longs to break above but if they do then there’s scope for a large rally considering the previous declines. On the downside, 13.87 is potentially key support and bulls will want to see this hold as if it gives way then there’s the chance for a flush lower.  

Silver is looking to turn higher with the EMAs not far from printing a bullish cross. The market is higher by over 1.5% today but needs to break above 14.95 before a larger rally can occur. Source: xStation