Gold Rally Pauses but Underlying Market Remains Firm
On the charts, the 61.8% Fibonacci level at $1,492/oz. has just been broken but remain in-plays while the recent high/low either side of $1,472/oz should provide support if the price continues to fade lower. Overall the chart remains positive, trading above all three moving averages, while gold has moved back out of the overbought zone.
The DailyFX Calendar covers all important market moving data releases and events.
Gold Price Daily Chart (February – August 12, 2019)
IG Client Sentiment data show that 61.3% of retail traders are net-long of gold, a bearish contrarian indicator. However, recent daily and weekly positional changes give us a bullish contrarian bias.
Silver Eyes Support Zone
Silver’s recent breakout has stalled, and the recent slip back has pushed the price back towards an important support zone between an old double-high at $16.65/oz. and the 61.8% Fibonacci retracement level at $16.56/oz. Just below here is the 20-day moving average which again should provide a level of support. As with gold, the chart remains biased to further upside with the recent drift lower taking silver out of extreme overbought territory.
Silver Daily Price Chart (November – August 12, 2019)