- Gold prices remain tilted lower due to key trendline
- On the other hand, Silver remains in a neutral state
- What are key levels to watch for XAU and XAG?
On the daily chart below, gold prices seem to be finding it harder and harder to overcome the important falling trendline from May. Following a breach below the rising trendline from October, XAU/USD climbed to it last week but was unable to push back above it. This led to the formation of a crucial point of resistance where the two trendlines met.
#GOLD 's H4 chart shows a sideways movement between 1928 and 1915.50, with declining prices after testing the upper level at 1928. A potential buying opportunity could be at 1916, but a bearish trend is confirmed.#XAUUSDsignal @HSBC_FR @HSBC_UK @saxobank pic.twitter.com/uDT177pgsY
— Patrick Wagner (@PatrikWag6443) September 12, 2023
Since then, prices have aimed slightly lower, reinforcing the falling trendline. From here, immediate support is the 38.2% Fibonacci retracement level of 1903.46, followed by the August swing lower at 1884.89. Breaking above the trendline could open the door to a broader reversal, exposing the 23.6% level at 1971.63.
— 𝘚𝘩𝘢𝘥𝘰𝘸 𝘚𝘵𝘳𝘢𝘵𝘦𝘫𝘪 (@ShadowStrateji) September 12, 2023
Looking at silver, the overall technical environment is unchanged. The reason for this is that the XAG/USD currency pair is currently trading in a range between a rising zone of support from August 2022 and a falling range of resistance from earlier this year. This has recently resulted in a chart formation known as a Symmetrical Triangle. The breakout’s direction could then be crucial for the subsequent trend.
— Ninja Meraki (@NinjaMeraki) September 12, 2023
Currently, silver is hovering around the midpoint of the Fibonacci retracement level of 23.02, breaking lower exposes the rising range of support and the 61.8% point at 22.29. On the flip side, immediate resistance is the 38.2% level at 23.75. Just beyond that the falling range of resistance will kick in. With that in mind, the silver outlook remains neutral.