Forex Trading Library

Gold Rally Resumes This Week

orbex weekly metals wrap

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The gold market has seen a better session this week with the metal advancing over the course of the week’s trading. Gold prices have been fairly contained over recent weeks with price settling into a range between support at the 1919.92 and resistance around 1980.66.

The sell-off in USD which had fuelled the rally into 2074.77 highs has dried up over recent weeks. The US dollar posted a recovery in response to better data over recent weeks. However, price action in the dollar remains unconvincing and the risk of further losses remains elevated.

The Fed recently confirmed a shift in its inflation targeting strategy to allow for inflation to run above its 2% target. The move essentially means that instead of looking to raise rates as inflation hits 2%, the Fed is now prepared to hold off on rate hikes while it assesses the impact on the economy.

With this in mind, the outlook for gold remains bullish in the short term with the US dollar likely to continue to meet selling pressure.

The NFP result last week has also raised further questions over the pace of the recovery in the US. While further jobs growth was seen, the release came in a little lower than expected. It shows that momentum has waned heavily following the initial rebound in April, again capping the upside in the US dollar.

Gold Prices Hold Above Support


Price action in gold has been fairly stagnant following the correction from the 2074.77 all-time highs. Price remains supported by the 1919.92 lows and the rising trend line from 2020 lows.

While above here, the focus remains on the continued upside in the near term. Bulls need to see price back above the 1980.66 level to regain upside momentum and should we see a break below the 1919.92 region. The next support to watch will be the 1826.71 zone.


The silver market has found itself in the doldrums over recent weeks also. The quiet summer trading seen over August has led to silver prices oscillating around the 27.4502 level.  The correction higher in USD has been a challenge for silver prices which remain well supported by firmer equities prices.

Stronger than expected manufacturing readings out of the US and eurozone have created upside support for silver recently.

Silver Remains Range-Bound


While price has been drifting higher following the recovery from below the 25.1018 level support, the moves remain weak and price is currently trading beneath the 27.4502 level once again.

For now the focus remains on continued upside. However, should we see price dip below the 25.1018 level, the next support to watch is the big 20.4050 level. The rising trend line comes in just above it.

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