Gold Silver Outlook:
– Gold (XAU/USD) prices remain unfazed by ECB decision
– Silver (XAG/USD) price action remains supported by psychological support at $25.00
– Will FOMC Meeting Minutes provide the catalyst for the next big move?
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Gold (XAU/USD) and Silver (XAG/USD) prices have edged slightly lower despite rising concerns of the Delta variant across global markets. Although the demand for safe-haven assets remains supported by rising inflation concerns, positive European PMI data and upbeat earnings of US tech stocks have hindered the ability for commodities to regain possession of the imminent trend.
As risk-sentiment seeks further clarity, the FOMC meeting minutes and additional major risk event risk on next week’s economic calendar may further assist in the catalyzation of price action.
Gold (XAU/USD) Price Action
Gold (XAU/USD) are trading at a critical level of support, threatening a break below $1800, a level that has proven to hold strong on numerous occasions. With the formation of a Golden cross (on 28 June) supporting the correction from June’s slide, failure to drive prices above $1819 could provide bears the opportunity to test further downside potential.
Gold (XAU/USD) Daily Chart
Chart prepared by Tammy Da Costa using TradingView
Silver (XAG/USD) Price Action
Silver (XAG/USD) prices are currently trading above a critical level of support, formed by the key psychological level of $25.00. As bulls and bear continue to battle it out ahead of next week’s major event risk, price action remains below both the 20 and 50 Day Moving Average (MA) while the Commodity Channel Index (CCI) remains in oversold territory (at least for now).
Silver (XAG/USD) Daily Chart
Chart prepared by Tammy Da Costa using TradingView
For the imminent move, the 61.8% Fibonacci levels of two major moves continue to provide support and resistance at the respective levels of $24.86 and $25.68.
Should bulls wish to regain dominance over the systemic, prominent trend, a break above the 50% retracement of $25.86 may be required.
Likewise, for the bearish narrative to persist, bears will be required to drive prices below $24.85.
— Written by Tammy Da Costa on behalf of DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
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