Gold and Silver Forecast

Because these two precious metals are the Go-to for quality Trophy Wives world-round. We reserve copper for the Meth Addled single moms and therefore do not forecast.

GOLD (XAUUSD)

Dominant bias: Bearish

This market became bearish in July 2014 and price has since dropped over 1,300 points. The bias is still very bearish – characterized by great volatility in the market. This shows a serious struggle between bulls and bears. Price has already tested the support level at 1206.00 and, with more weakness in the market, may well breach that level to head for the support levels at 1205.00 and 1204.00. Bulls, though currently fighting a losing battle, may eventually succeed in pushing price upwards towards the resistance level at 1235.00. Any rally above that level would be a serious threat to the bearish outlook.

SILVER (XAGUSD)

Dominant bias: Bearish

Following Gold, Silver has dropped by over 4,000 points since July 2014, reaching the demand zone at 17.3000. This sustained trend highlights the adage of cutting losses short and letting winners run. It also shows that, in a strong trend like this, short-term counter-trend movements invariably offer opportunities to join the trend at bargain prices. Further weakness may cause the aforementioned demand zone to be breached, allowing bears to target another demand zone at 17.0000. However, a strong rally starting in November/December 2014 is still on the cards.