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6 Jun 2013
Commodities Brief: Sideways chop continues in both gold and silver
FXstreet.com (Barcelona) - It was another choppy day in the precious metals sector, with gold finishing out the day up 0.21% at 1401, while silver finished flat at 22.50
The past few weeks has been extremely range bound for both gold and silver, with neither side being able to find enough momentum to produce substantial follow through. This is also apparent when looking at the short term moving averages (9 and 20dma) which have started to flatten out as price consolidates around them. However, looking at weekly chart, the short term moving averages both gold and silver remain in bearish set up with price both the sharply downward sloping 9 and 20dma’s. The longer term time frames will be important to keep an eye on, as usually they will ultimately determine which direction the next major move will be.
Initial support in gold sits at 1388 (support on 1 hour chart), followed by 1372 (support on daily chart). Further support sits at 1350 which will be a key level for gold to hold in order to avoid a big leg down. First resistance sits at 1420 (upper end of range), followed by 1440 (previous support, now resistance). As for silver, first resistance sits at 23.00, followed by 23.55 (previous support, now resistance). Initial support sits at 22.00. A break and close below 22.00 in silver would add to the bearish case and could help lead to the next big leg down.
The past few weeks has been extremely range bound for both gold and silver, with neither side being able to find enough momentum to produce substantial follow through. This is also apparent when looking at the short term moving averages (9 and 20dma) which have started to flatten out as price consolidates around them. However, looking at weekly chart, the short term moving averages both gold and silver remain in bearish set up with price both the sharply downward sloping 9 and 20dma’s. The longer term time frames will be important to keep an eye on, as usually they will ultimately determine which direction the next major move will be.
Initial support in gold sits at 1388 (support on 1 hour chart), followed by 1372 (support on daily chart). Further support sits at 1350 which will be a key level for gold to hold in order to avoid a big leg down. First resistance sits at 1420 (upper end of range), followed by 1440 (previous support, now resistance). As for silver, first resistance sits at 23.00, followed by 23.55 (previous support, now resistance). Initial support sits at 22.00. A break and close below 22.00 in silver would add to the bearish case and could help lead to the next big leg down.