• Gold pricesΒ remain tilted lower due to key trendline
  • On the other hand,Β SilverΒ 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.

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.

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.

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.

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