Gold, Silver Prices Finish Strong, Bearish Trends Persist

Gold and silver prices surge, facing resistance but maintaining gains amid bearish trends. Key levels highlighted for traders.

Gold and silver prices are wrapping up a robust week with notable gains. XAU/USD has surged over 2.4 percent, marking its best performance since March. The cautious tone set by the Federal Reserve in recent statements has attributed to this rally. Gold faces a critical resistance level at 1884.89, a significant inflection point from August. Above this, the 50- and 200-day moving averages present additional hurdles. The bearish crossover observed in September has established a downward technical bias. If a reversal occurs, the Fibonacci retracement midpoint at 1848.37 and the range between 1804.78 and 1815.30 become essential support levels.

Gold, Silver Prices Finish Strong, Bearish Trends Persist

Silver, represented by XAG/USD, has experienced a similar uptrend, rising almost 2 percent this week. The last time silver displayed such momentum was in mid-September. Immediate resistance levels include the former support range from September and the 38.2% Fibonacci retracement level at 22.85. These levels might reinforce the broader bearish trend observed since early May. In a downturn, the Fibonacci retracement midpoint at 21.84 provides initial support, followed by the 61.8% level at 20.83. A breach below the latter would indicate a potential resumption of the downtrend.

As the weekend approaches, traders closely monitor these critical levels in gold and silver markets. Any further developments will likely influence the outcome of Fed communication and broader market sentiment. Advisors recommend that investors remain vigilant, considering these technical factors as they make their trading decisions in the precious metals market.

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