Gold Prices Fail At Resistance
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Once again on Tuesday, gold attempted to break out above $1,310 resistance and once again failed. That doesn’t mean it won’t break out today, but $1,310 is proving to be a formidable foe, keeping the metal in a consolidation phase.
Gold is slightly higher this morning but still below the $1,310 level. There is no telling when the yellow metal will break out but based on the recent action, our expectation is to see gold fail and head back to the $1,290 level.
The fact that gold has made higher lows indicates the future is bullish; however, for now, expectations are flat to lower. This action is common in all markets; investors should hold while traders should be looking for a pullback.
Silver is in a similar pattern but should break out to the upside before gold. Silver is in the same pattern as gold but congesting at the bottom end of the consolidation pattern. For now, expectations are for both metals to churn, testing support before breaking out.