Forex Video Briefing (8/22) – Gold and Silver
Gold fell below the 200-day SMA this week and pulled its daily RSI reading below 40. This shows loss of the bullish bias and momentum. However, this bearish attempt is still within the short-term. In the daily chart, you can see price now testing a triangle support, as well as a common low from April-May, which reaches down to 1268. A break below 1260 would be a signal that gold is turning bearish in the medium-term, and would open up the 1240 support pivot from June, then the 2014-low around 1183. If after the breakdown, we get a pullback, price should stay south of 1300 to affirm this bearish outlook.
Silver price has been in a persistent bearish trend in the medium-term since finding resistance at 21.57. It has been trading down within a well defined falling channel. The next support might be in the 18.95-19.00 area which represents a common low above the 2014 low around 18.64. To the upside, silver established a local support/resistance pivot at 19.73 then 20.17. Price should remain bearish unless there is a break above 20.20, and then a subsequent failure to return below 20.00. Then, the market would simply be neutral. The bullish outlook however should not enter consideration until a break above 20.50, and until the daily RSI returns back above 60. Even then, we are looking at a general neutral-bullish mode.