Silver and Gold Prices Hold Steady Amidst Recent Losses

Explore recent gold and silver prices, analyzing key support levels and technical patterns for informed trading decisions.

In recent sessions, gold and silver prices have taken a hiatus, pausing their downward momentum since late September. This momentary respite has strengthened key support levels, prompting investors to examine the near-term technical landscape for precious metals closely.

The gold has experienced a significant breakout below the rising support since earlier this year. Additionally, a bearish Death Cross has formed between the 50- and 200-day moving averages, underscoring the prevailing bearish sentiment in the market.

Gold and Silver Prices Hold Steady Amidst Recent Losses

The recent price action has confirmed a break below the midpoint of the Fibonacci retracement level at 1848.37, directing attention towards the immediate support level of 1804.78, which marks the low for 2023. Although a potential bounce is not out of the question, the moving averages could act as formidable resistance, sustaining the overarching downward focus.

A further decline in gold prices could expose the 78.6% Fibonacci retracement level at 1714.83, representing a significant bearish target in the medium term.

The scenario for silver prices mirrors that of gold. XAG/USD has confirmed a breakout above its previous rising support like its counterpart. Following the last week’s losses, prices tested the 61.8% Fibonacci retracement level at 20.83.

Should silver hold its ground at this support level and rebound, attention would turn to the midpoint of the Fibonacci retracement at 21.85. However, this level might be a barrier, potentially reinforcing the near-term bearish outlook.

If silver continues its descent, it will target the 78.6% Fibonacci level at 19.39 before revisiting the support zone, ranging from 17.56 to 18.09, last tested in the previous year.

Amidst these developments, market participants keenly observe how these precious metals navigate these critical junctures, watching the evolving technical patterns to guide their trading decisions.

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