Technical Analyst, Saxo Bank Group
Gold bullish trend is intact after a sideways correction. The precious metal is currently breaking above the 0.618 retracement at 2,434 and if closing above this level, Gold could test its previous peak and all-time high, possibly reaching +2,500.
Gold failed earlier this month to break higher, but this time it could succeed. RSI is showing positive sentiment, and if it closes back above 60, it will further confirm the bullish outlook for Gold.
Gold needs to close below 2,360 to reverse the bullish trend.
Silver formed a bullish engulfing bottom and reversal pattern last Thursday.
When I see an engulfing candle on FX spot, I am a bit skeptical, so I always check with the futures market.
And, for Silver, there is also a bullish engulfing candle formed on the future, making the pattern more reliable.
So, despite RSI not showing divergence, Silver could rebound to around 29. A break above the upper falling trendline is likely to be the first indication of Silver reversing its bearish trend.
However, a daily close above 29.45 is needed for Silver to establish a bullish trend.
A daily close below 26.40 will demolish the bullish reversal, extending the bearish move.
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