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Gold & Silver Price Outlook: Watch Support Just Below


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GOLD & SILVER TECHNICAL OUTLOOK:

  • Gold has the 200-day moving average just beneath
  • Silver is trading near support from 2020-2021
 

Gold has been trading lower with rates and dollar strength raging on, but the decline could come to an end soon, at least for a bounce. There is good support not far below via a pair of technical thresholds that are in confluence.

The 200-day moving average is at 1836 and starting to level off. Just beneath that point is a trend-line from the August 2021 low, when a mini-flash crash even occurred. The trend-line lies around roughly 1830.

A run through the 200-day that sees price reverse from trend support to close on a daily basis back above the 200 could make for an interesting counter-trend opportunity for would-be longs. For shorts, it could be a signal to cut back on exposure or employ a trailing stop strategy.

GOLD (GC) DAILY CHART

gold futures chart

Gold Chart by TradingView

Silver continues to lead the way lower, but like gold it also has important support just below. The low created in late 2020 at 21.81 is at risk of getting breached, but not far below at 21.41 lies a double bottom effort from last year.

A tag and reverse from support or a run through and reversal (even better) could lead to a rally in the days ahead. The rally would initially be viewed as countertrend in nature, but given the nature of silver it could be a powerful upside move in fairly short order.

A breakdown below support would turn that current floor into a ceiling to watch on a bounce. For now, though, looking at it through the lens of support until proven otherwise.

SILVER (SI) DAILY CHART

Silver daily chart

Silver Chart by TradingView

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---Written by Paul Robinson, Market Analyst. DailyFX 10th May 2022.

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    • This is not an acceptable explanation for me unfortunately, I am fully aware of the need to move spreads and I had accounted for that. Especially at the open of a market, but your spread was totally unreasonable the spread on DEC contracts is already at 130pip standard, to increase it to 400pips and hold it there even after 5 mins of trading. As my execution was a 09:06 the main market volatility had already been accounted for.   So disappointing after 6years being a customer and on a profitable trade as well: 
    • Dear @MB1470, Thank you for your post. Please note that dealing spreads on shares are subject to variation, especially in volatile market conditions or other unusual circumstances.  Market spreads can widen significantly, particularly at the beginning and end of the trading day, and minimum spreads may exist. Thanks, KoketsoIG
    • This morning at the market open on NOVO DEC contracts. On Spread Bet.    the spread moved from 138pips to close to 400 pips? How can this be reasonable the candle is only displayed on a 15-2min time period not on smaller periods. At market open 09:00 ????? How is this even remotely reasonable?     
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