Thu. Dec 7th, 2023
    New Opportunities for Gold and Silver Trading

    Gold and silver investors are keeping a close eye on the market this week as new catalysts emerge. Last week, gold experienced a slight rise after a consecutive two-week loss, but Friday’s price action indicates a potential pullback in the coming days.

    Currently, gold is trading down from the $1985 level, with the next support level at $1937. This level is significant as it aligns with the 200-day simple moving average (SMA). The recent weaker dollar and decreased US yields have contributed to the temporary support for gold after the US CPI print-inspired dollar selloff.

    One potential catalyst for gold this week is the release of the FOMC minutes, which could impact the value of the precious metal. Additionally, the ongoing Israel-Hamas conflict may play a role in gold’s performance, as a new phase in the war could lead to increased demand for the safe haven asset.

    Meanwhile, silver also had a strong week, reaching channel resistance and the 50% Fibonacci retracement. However, the metal has encountered resistance at these levels and has started the week in a downward trend. Support levels for silver are currently at $22.35 (38.2% Fib) and $20.52 (23.6% fib retracement).

    Traders and investors should pay attention to the expected 30-day gold volatility, which has been decreasing recently. While this trend may limit the potential for significant spikes in gold prices, the metal remains in a favorable position to benefit from continued USD selling and lower US yields.

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