We maintain our bearish view on gold, and for the selling to continue a little longer. In a healthy market, the sellers usually will face exhaustion and we felt that the gold market would soon consolidate before any significant rebound. The new low is set at $ 1269, but we felt that the market could retest the low before a potential rebound. Some spark of physical demand appeared in Thailand, but the up take is not as great as the previous sell off. Investors are wary of another leg lower, but dip buyers could eventually take the market higher by surprise.
Only a break above $ 1325 will give bulls some comfort, but we see a potential low at $ 1250 for now. Otherwise, we felt that a major short covering could be on the cards.
-- Resistance: $ 1325, $1366, $ 1423
-- Support: $ 1269, $ 1250, $ 1200
Traders Notes: Buy at $ 1250 / $ 1260 small contract to accumulate – Stop Loss at $ 1235 with target at $ 1318 and $ 1340.
Silver prices fared no better but last week it ended with a rebound to a high of $ 20.02. We remain bearish and see further downside on the white metal for now. The lack of physical demand adds further selling pressure for now and unless Gold prices can move higher, then we expect silver to retest lower numbers. There were no strong buyers and selling will continue to dominate the market. Investors favour lower silver prices and we may continue to see it weaken before any rebound rally.
-- Resistance: $ 21.51, $ 22.35, $ 25.59
-- Support: $ 19.38, $ 19.00
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Gold And Silver; Selling Exhaustion?
Published 06/24/2013, 07:57 AM
Updated 05/14/2017, 06:45 AM
Gold And Silver; Selling Exhaustion?
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