Gold And Silver Spot Forecast - Feb 24, 2020

Published 02/24/2020, 04:17 AM

Gold continues higher hitting all targets as far as 1645/47 and then to 1678.

Silver beat resistance at 1782/87 for a buy signal targeting 1850/52 and important resistance at the January high at 1882/85. Huge profits on longs with a 90 point gain and we topped exactly at the important resistance level.

Gold now overbought but without a sell signal shorts are very risky of course in the strong bull trend. The downside should be limited with a good chance that we can trade in a sideways consolidation. First support at 1661/59. Below 1657 we should fill the gap at 1649/47. A bounce from here is likely but longs need stops below 1642.

A break lower targets 1638/36 and 1630/28, with a buying opportunity at 1624/23. Longs need stops below 1620.

Silver topped almost exactly at important resistance at the January high at 1882/85 as we become overbought. Again, sideways trading looks likely at this stage but swing shorts are risky with no sell signal. Downside expected to be limited with first support at 1850/46 then a buying opportunity at 1830/26 with stops below 1820.

A sustained break above 1886 is a buy signal targeting 1872/74 and above 1880 look for 1895/99.

Trends

  • Weekly outlook is positive
  • Daily outlook is neutral
  • Short Term outlook is positive
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