Gold Price Forecast: the near-term levels for gold price remain more or less the same, as traders yearn for a range breakout.
At the time of writing, bulls are struggling just below the 200 DMA at $1,847. The next strong resistance is seen at the mildly bearish 21 DMA at $1,850.
Buying resurgence above the latter could challenge the $1,852 psychological level. Daily closing above that price zone is need to take on the recent range highs near $1,860.
The 14-day Relative Strength Index (RSI) continues to trade flatlined below 50.00, suggesting that sellers are likely to keep control.
On the flip side, Friday’s low of $1,834 is the level to beat for XAU bears, below which a fresh downswing will kick off towards the $1,818 round level,
The June 16 low of $1,816 will be next on sellers’ radars. The rising trendline support at $1,805 is the line in the sand for gold optimists.
Gold remains anchored near $1,850. In the view of strategists at TD Securities the bias is still skewed to the downside under the weight of a hawkish Federal Reserve.
Risk assets attempt to stage a relief rally
“While trend followers are forced to buy their length back at higher prices, this flow is likely being met with a reversal in safe-haven length as risk assets attempt to stage a relief rally.”
“Looking forward, higher rates should again force prices and long exposure in gold lower.”
Silver Price Forecast
Silver attracted fresh buying near the mid-$21.00s region on Tuesday and inched back closer to the previous day’s swing high during the first half of the European session. The white metal was last seen trading around the $21.65 region, up nearly 0.50% for the day.
Looking at the broader picture, the silver has been oscillating in a familiar range over the past four sessions and continued with its struggle to make it through the 200-period SMA on the 4-hour chart. The said barrier, currently around the $21.80 area, is closely followed by the $21-90-$22.00 supply zone, which should act as a pivotal point.
Meanwhile, technical indicators on hourly/daily charts, so far, have struggled to gain any meaningful traction and warrant caution before placing aggressive directional bets. This further makes it prudent to wait for a sustained move in either direction before traders start positioning for a firm near-term trajectory for the silver.
- Silver gained some positive traction on Tuesday, though lacked any follow-through.
- Bulls seem struggling to make it through the 200-period SMA on the 4-hour chart.
- The neutral technical setup warrants caution before placing fresh directional bets.
A convincing break through the $21.50 horizontal support would be seen as a fresh trigger for bearish traders. The silver might then drop back to the $21.00 mark en-route the monthly low, around the $20.90 region. The depreciating move could get extended and drag spot prices to the YTD low, around the $20.45 region set in May.
On the flip side, sustained strength beyond the $22.00 mark should pave the way for a move towards an intermediate resistance near the $22.30 area en-route the $22.60 supply zone. Some follow-through buying would shift the bias in favour of bullish traders and allow the silver to reclaim the $23.00 round-figure mark.