Gold Finally Shakes off the Rust, Breaks Range with Silver Following its Lead

Gold/Silver technical highlights:

  • Gold finally breaks out of brutal trading range
  • Going with breakout as long as range top holds
  • Silver moving higher, but sluggishly

See where DailyFX analysts see Gold heading into year-end and the expected drivers in the Q4 Gold Trading Forecast.

Gold finally breaks out of brutal trading range

Yesterday, gold surged $30 and with it the trading range, bordering on historical in tightness, was finally broken with authority. The top side break clearly took out the 1214 level and trend-line from April, and on that as long as price doesn’t sink back inside the range then risk is skewed higher.

Looking to the 1210/14 area as support on a pullback there is room for a rally to unfold up to near 1240 before lows from July (which was a pivot on the December 2015 trend-line) and December. Gold could continue to trade beyond that level, but for now that looks like the first good spot to watch for sellers to emerge.

Tactically speaking, would-be buyers can use the top of the range to lean on as support, while those looking

Article source: https://www.dailyfx.com/forex/technical/home/analysis/xag-usd/2018/10/12/Gold-Finally-Shakes-off-the-Rust-Breaks-Range-with-Silver-Following-its-Lead-PRtech.html