Monthly Technical Review for Gold and Silver

GOLD (XAUUSD)

Dominant bias: Bearish

Contrary to the assumption that Gold would be bullish, its price has gone down quite significantly over the last 2 weeks. There is now a Bearish Confirmation Pattern in the market, which could continue to exhibit weakness. There are support levels at 1275.00 and 1265.00 to serve as targets for the bears if price moves further south. Meanwhile, resistance levels at 1295.00 and 1300.00 are likely to act as major barriers for any bullish rallies along the way. Any movement above those resistance levels will mean the end of the bearish outlook and a new bullish outlook.

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SILVER (XAGUSD)

Dominant bias: Bearish

As long as Gold is bearish, Silver will mimic it. When Gold becomes bullish, Silver will also be pulled northwards. Right now, Silver is bearish and the bias is very strong. In fact, any rallies in the current market are great opportunities to sell short. However, this bias is not going to last forever. While more weakness could result in price testing the demand levels at 19.2000 and 19.0000, the supply levels at 19.7000 and 19.9000 will almost certainly restrict attempts by the bulls to push the price upwards. Any movement above those supply levels will signal the end of the bearish outlook. This market is currently forming a base, so there should be a breakout soon.