Gold prices moved slightly lower overnight after mixed US economic data. The Federal Reserve reported a sharp drop in US industrial production for September.
The month-over-month figure crossed the wires at -1.3% versus the +0.2% consensus forecast. The October NAHB Housing Market Index rose to 80 versus a forecasted 76, which was also the previous month’s figure.
Gold Silver Analysis
Gold meets support at that old favourite key level of $1762. Longs need stops below $1754. Longs here target $1775 (hit this morning) then $1785. Strong resistance key at 1795. Shorts need stops above $1801. A break higher is a medium term buy signal initially targeting $1807 but eventually reaching $1827 next week.
A break below $1754 is a sell signal targeting $1744. Below $1744 risks a slide to $1737—$1730.
Spot Silver buying opportunity at $23.20 with stops below $22.80. Holding here maintains the medium term buy signal initially targeting $23.80 & $24.20.
A break below $22.90 is a sell signal targeting $22.75 & 22.40 for some profit taking on shorts.