Gold and silver technical analysis leading into the US open
(Kitco News) - Gold is still looking positive ahead of the US session and has risen 0.32% in the Asian and EU sessions respectively. Looking at the technicals the price is now stuck in the previous distribution between $1931.9 and $1983.8 per ounce. If the bull run is to continue today or next week then the next resistance at $1983.8 would need to be taken out. Beyond that, the psychological $2K level is next followed by the all-time high.
On the downside, the previous resistance is now the main support area. If this area is broken then the value area at the previous distribution could be support and that stands at $1907.2. Beyond that the consolidation low is the main area to watch at $1851.1.
Silver is not looking as bullish as gold and this could be due to its industrial element. The main resistance is at the blue line near $26.15 per ounce. If this level is broken then it would change the fortunes of the precious metal and make a new wave high. Beyond that, there is a decent resistance at the red resistance trendline that would need to be watched. If this resistance at $26.15 is not taken out then the market could head back to the support at $25.10 per ounce.