Gold & Silver Update-Nov 7th

Nov 07 2014, 10:39 am
Orbex Gold & Silver Analysis

Gold futures trading comfortably after breaking support at 1180. But watch out for a retest to this familiar level.

Gold Futures – Technical Update

Gold futures continue to be suppressed as better than expected labor markets and overall uptick in the US economy has helped a stronger Dollar. With the Fed’s easy money policy now done with, the future for Gold looks bleak at least for the next few quarters. The psychological and multi-year support at 1180 was easily broken with the precious metal closing at 1171.45 last week.

Gold weekly Chart
Gold Weekly Chart

The above weekly chart for Gold shows the familiar support region being finally broken last week with the next support coming in at 1015. However, we could expect to see a brief corrective rally back to the 1180 region before Gold can think of further declines, trading steadily within a very long term price channel.

As of now, the declines in the precious metals is being supported a better US economy although there are still some concerns in terms of the global economy cooling down and there is always a risk of Gold futures rallying at the slightest hint of any geo-political turmoil. While the markets have pretty much digested the continuing threats of the crisis in the Middle-East, Russia-Ukraine and Ebola any new Black swan events could see Gold take a turn for the better. However, any gains are likely to be held near the 1180 region.

Today’s key risk for Gold futures will be the monthly Non-farm payrolls data which is expected to be yet another strong print. However, failure to meet expectations could see Gold quickly head back to 1180 without hesitation.

Gold Pivot Levels

R3 R2 R1 Pivot S1 S2 S3
Monthly 1324.75 1290.03 1230.74 1196.02 1136.73 1102.01 1042.72
Weekly 1292.07 1263.88 1217.67 1189.48 1143.27 1115.08 1068.87


Silver Futures – Technical Update

The decline in Silver has been rather sharp in terms of the technical price objectives. The descending triangle mentioned quite a few times in previous analysis of Silver looks ready to be hit with Silver futures trading close to the final objective of 14.59.

Silver Weekly chart
Silver Weekly Chart

This level, which is the target of the descending triangle, also happens to be a long term support level, so it will be interesting to see how Silver prices react to this zone, considering that that decline from 18.7 region, a long term support has been very swift with little to no significant pull backs during the decline. It wouldn’t be surprising to see a rally back to test the broken support of 18.7 for resistance. The next major support level for Silver, comes in at a price level of 8.31 but not before the long term trend line resistance of 12.22.

Silver Pivot Levels

R3 R2 R1 Pivot S1 S2 S3
Monthly 19.39 18.6 17.35 16.56 15.31 14.52 13.27
Weekly 18.72 18.06 17.08 16.43 15.45 14.79 13.81


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