Rumour on the Fed tapering as early as next week sent equities lower and the DYX higher. Initially, gold found support at $ 1367 and rebounded higher to $ 1376 before the rumour hit the market. We expect prices to rebound but selling pressure continued to dominate.
A break pass of $ 1367 will trigger lower prices around $ 1355 to $ 1345 area. The bears are clearly winning, and have the intention to revisit $ 1321 level. However, the previous low at $ 1338 will be a strong support and only if that is given, then we see a potential stop loss trigger scenario that might send gold lower.
Resistance: $ 1395, $1400, $ 1423
Support: $ 1367, $ 1355, $ 1325
As per our last commentary, we watched the dollar index closely as it continued to affect silver prices. The DYX meet resistance as it attempted to breakout from the downtrend that started from last May – after posting a high of 84.46. After posting a high of $ 22.04, prices dropped lower despite the selloff in equities and the U.S. dollar's general weakness.
The metal put a higher low, but a lower high which indicates further weakness ahead. We are not surprise to see further selling pressure in this market if the dollar rebound higher. A break below $ 21.00 will open the floodgate to previous low at $ 20.00. Silver continues to trade in a downtrend and it broke below its 20 DMA after the selloff. Only a break above $ 23.35 will encourage the bears to do more short covering.
Resistance: $ 22.20, $ 23.35, $ 25.59
Support: $ 21.10, $ 19.66, $ 19.00
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Gold And Silver: Continuous Selling
Published 06/12/2013, 07:17 AM
Updated 05/14/2017, 06:45 AM
Gold And Silver: Continuous Selling
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