Gold continues to consolidate in an ascending triangle with higher lows while upside remains capped at $1400 level. Several attempts to overcome $1400 have only spark more selling. We also noticed that gold have not been able to act positively despite supporting evidence in the weakness in US dollar index as well as the minor correction in equities. Only a break and a close above $1420 will give us the confidence to consider taking a buy position but the current range trading means that we cannot ignore the potential of a retest to $1354 level.
- Resistance: $ 1414, $1417, $ 1438
- Support: $ 1354, $ 1337, $ 1325
The white industrial metal continues to consolidate between $22.80 and $22.20 level. Prices dipped lower in the early Asian trading sessions but recovered shortly on the back of a weaker US dollar index. Sell off in equities are also helping to support higher prices but we are disappointed at the rebound rate despite all of the positive catalysts. This indicates that bearish sentiment dominates and the lack of follow through buying could spell more trouble for Silver prices in the coming weeks. Meanwhile, a break above $23.23 will give the bulls more ammo to retest $26 area.
- Resistance: $ 23.19, $ 23.65, $ 25.59
- Support: $ 22.05, $ 19.66, $ 19.00