Gold and silver technicals heading into the US open
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(Kitco News) - Gold has rebounded leading into the US open but there are some key resistance levels the yellow metal has to take out before looking bullish again. Leading into the last week before the US election it is understandable things are slightly sideways. Gold has been oscillating around the $1900 per ounce market for a few sessions and today has been no different. Leading into the EU session the price of gold was weaker as there was a few bearish news stories from over the weekend to digest. Now the futures price has recovered and gold is trading just above flat. The bulls need to take out the $1916 resistance to have a chance to attack the previous wave high at $1936. The level marked in purple has been used on multiple occasions and will take some beating. There is also some trendline resistance at the black upward sloping trendline which was the bottom of a pattern formation that had been broken to the downside.
Silver is still around 1% lower and the chart structure is looking slightly more bearish. As you can see from the 4-hour futures chart below the price has broken the flag type pattern to the downside and could be setting up for a retest of the structure. The market has broken back above the support level $24.31 per ounce and if the bulls to take charge again $24.73 would need to be taken out. The red support is still the one to break for the bears as it is the previous wave low at $23.70. If this level breaks it could pave the way to the low on the chart near $21.80 but that seems unlikely for the moment.