Gold & Silver Price Analysis – Resistance May Not Keep Them Down for Long

Gold/Silver technical highlights:

  • Gold high 1230’s/low-40’s remain a lid (for now)
  • Silver has a clear hurdle to watch

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

Gold high 1230’s/low-40’s remain a lid (for now)

Gold has been one of the more difficult markets to trade since bottoming in August, with almost all of its price action dominated by range-bound activity. During the most recent round of chop gold is starting to show positive signs that it may want to break higher fairly soon.

The area from around 1237 up to 1243 arrives as resistance from December and a minor low in July. The reversal bar on 10/26 was proof that sellers are in the area, but the strong recovery after the dip once again has gold knocking on the door.

The trend-line extending up from a month-ago should help keep in a floor. Before a breakout can take shape a little more squeezing between resistance and the trend-line may work gold into a somewhat defined wedge that may make for an even more explosive move.

The general trend off the August

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