Gold and silver technicals are showing some marginally positive signs leading into the US open
(Kitco News) - Precious metals are trading higher leading into the US open but only just. Gold is trading just above flat and the yellow metal has just moved above the $1900 per ounce level once more. The psychological zone has been a pivot level over the last couple of sessions and as the US administration is in deadlock over the stimulus deal it seems likely to continue. The area on the 1-hour chart below between $1896 and $1917 seems to be the floor and the ceiling at the moment and a break either side could give us a clue on the future trajectory of the metal. The black downward sloping trendline is key if the level breaks it could pave the way to the price heading toward the blue resistance zone at $1939 per ounce.
Silver is looking more positive in terms of chart structure. The 1-hour chart below shows that the price seems to be heading toward the $25 per ounce mark. The red support level at $23.70 held up well on the 15th October and since it seems the market has made a few higher lows but the next target for the bulls is the blue resistance at $25.12. If the level does break the next resistance is up at $25.70 and beyond that, the top of the channel marked in black.