Gold, XAU/USD, Silver, XAG/USD – Technical Forecast for the Week Ahead:
- Gold costs aimed increased final week, however beneficial properties trimmed on Friday
- If you’re watching XAU/USD, preserve a detailed eye on the trendline
- XAG/USD is wanting comparatively impartial till a key breakout is seen
Gold Technical Forecast – Slightly Bullish
Gold costs aimed increased this previous week, however trimmed losses on Friday as a really robust US jobs report introduced Federal Reserve tightening again into the highlight. From a purely technical standpoint, the yellow metallic managed to carry a detailed above a key falling trendline from March. That mentioned, upside follow-through has been missing. Further beneficial properties would more and more shift the outlook bullish.
A flip again underneath the trendline would doubtless be a near-term bearish signal, putting the give attention to the broader downtrend since earlier this yr. In that case, clearing fast assist at 1753 would open the door to revisiting the July low at 1681. Resuming the broader downtrend entails pushing beneath this level, exposing the 2021 low at 1676 and past.
On the opposite hand, extending the near-term uptrend locations the give attention to fast resistance at 1803, which is the 61.8% Fibonacci retracement. Beyond that, the 100-day Simple Moving Average (SMA) would kick into focus. That might preserve the broader draw back focus. Otherwise, subsequently clearing the road would open the door to revisiting the June excessive at 1879.
XAU/USD Daily Chart
Silver Technical Forecast – Neutral
Unlike gold, silver costs aimed cautiously decrease this previous week. Moreover, a more in-depth look reveals that the valuable metallic was unable to push above the 20.32 – 20.62 inflection zone. As such, the technical image appears impartial for the week forward. Broadly talking, XAG/USD stays in a downtrend since costs topped again in February.
The 50-day SMA additionally held as resistance this previous week, sustaining the downtrend. A break above this line, as properly as the inflection zone, would more and more shift the outlook bullish. Such an final result locations the give attention to the 23.6% Fibonacci extension at 20.98. Beyond the latter, the 100-day SMA might kick in as resistance.
In the occasion of a flip decrease, the midpoint of the extension appears to be fast assist at 19.27. Beyond the latter, lows from July will kick in, making for a key zone between 18.14 – 18.41. The outlook would doubtless stay impartial till a breakout is achieved underneath this vary. That would expose the 78.6% extension at 17.41.
XAG/USD Daily Chart
–— Written by Daniel Dubrovsky, Strategist for DailyFX.com
To contact Daniel, use the feedback part beneath or @ddubrovskyFX on Twitter