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Gold, Silver Correct Lower After Soaring Last Week: What Lies Ahead?

Published 10/17/2023, 04:16 AM
XAU/USD
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XAG/USD
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GC
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SI
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CL
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Gold XAU/USD closed at the high of the day on Friday & the high of the week, as well as closing above the 2-week high after the very strong reversal. It looked like further gains were likely when markets opened this week.

So I was surprised when we saw $25 wiped out on the open and prices collapsed to 1907.

Yesterday afternoon we held a range of 1907 up to 1922/24.

We should have very strong support at 1903/1898. Longs need stops below 1894. A break lower however could test strong support at 1885/1880. Longs need stops below 1875.

A break above 1925 rests last week's high at 1930/32. A break above 1934 can target minor resistance at 1940/45. A break above 1950 is a buy signal targeting 1962/65 and 1970/75.

XAU/USD 4-Hour Chart

Silver XAG/USD holding above first support at 2255/50 keeps bulls in control and can re-target 2278/81. A break above 2285 is a buy signal for today targeting 2295 and 2320/30.

Longs at 2255/50 stop below 2230. A break lower can target support at 2200/2190. Longs need stops below 2170.XAG/USD 4-Hour Chart

WTI Crude November futures holding support at 8690/8660 today keeps bulls in control targeting the only resistance of note at 8820/60. These levels marked the high and low for Monday. I should have recommended shorts at 8820/60 and I should have suggested shorts!

If you try shorts here today, stop above 8910. A break higher is a buy signal targeting 8970/90.

Longs at 8690/8660 stop below 8600.

A break below 8600 can target 8540/30, perhaps as far as minor support at 8460/30.WTI Crude-4-Hours Chart

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