Gold price (XAU) corrects from the strong resistance of $2,790 and consolidates within the ascending channel, the thin liquidity and reduced risk appetite have limited major moves.
The market is characterized by thin liquidity and a cautious risk appetite, which have limited significant price movements. Nevertheless, the precious metal continues to find support from ongoing inflation and geopolitical uncertainties.
After bouncing back from support near $2,540, gold is experiencing upward momentum that remains constrained within this range.
Similarly, silver (XAG) reflects gold's subdued activity, consolidating around crucial price levels. The metal encounters resistance due to economic uncertainty and fluctuations in demand.
The daily chart for gold price indicates that the price is trading within an ascending channel. It faced resistance at $2,790, close to the upper boundary of the channel, leading to a downward correction toward the channel's support. This support level, marked by the red-dotted trend line, prompted a strong rebound from the $2,540 zone. At present, gold is consolidating within the range established by the ascending channel.
The 4-hour chart further highlights this consolidation, as the price rebounds from the $2,540 zone and finds resistance at $2720, where another correction occurs. The RSI remains below the midline, suggesting another drop may happen before the next upward wave.
The daily chart for spot silver reveals that the price is trading within an ascending channel. After correcting from the $34.80 resistance level, it found support at $29.60, which aligns with the lower boundary of the channel. The downward-trending black trend line at $29.60 reinforces this support level. The formation of a bullish hammer around this point indicates that the next price movement is likely to be upward.
In addition, the 4-hour chart shows that spot silver has formed a descending broadening wedge pattern. On November 14, the price touched the support of this wedge at $29.60 and began to rebound. A second touch of this support is creating a potential double bottom, which will be confirmed if the price rises above $31.50. The $32.50 level remains a crucial threshold for maintaining upward momentum in spot silver.
In summary, the technical analysis of gold price and silver reveals a complex interplay of market dynamics. Gold price has rebounded from key support levels, specifically around $2,540, while facing resistance near $2,790 within an ascending channel. This rebound is supported by ongoing inflation and geopolitical uncertainties, despite the thin liquidity and cautious risk appetite limiting major price movements.
Similarly, silver’s performance mirrors that of gold, with support at $29.60 and the potential for upward momentum highlighted by a bullish hammer formation. The development of a descending broadening wedge could indicate a double bottom pattern, further supporting the case for a price increase if key resistance levels are breached.
Overall, while both metals are navigating through challenging conditions, their technical setups suggest potential for upward movement. Monitoring these key levels will be essential for understanding future price trajectories in the commodities market.
When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.
Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
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