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Here’s the current outlook on Gold and Silver.
GOLD (XAUUSD)
Dominant Bias: Bearish
Gold was in an equilibrium phase for most of the month of May 2014, but price has now broken out in the direction of the bears. From a weekly high of 1301.28, the price has dived, reaching a low of 1255.77. This shows that the upwards move that occurred on May 26, 2014, was a classical example of a false breakout. With a Bearish Conformation Pattern in the market, the price is supposed to continue to move downwards, although there is a high possibility of a rally which is expected to be transitory in nature. The resistance level at 1277.00 ought to serve as a challenge to the expected rally, while the price may go further south and reach the support level at 1200.00 in June 2014. There is even a possibility that the support level might be breached to the downside.
SILVER (XAGUSD)
Dominant Bias: Bearish
This is also a bear market – with an established bearish outlook on it. Although the extent of the southward journey is not as strong as that of Gold, it is expected that the price would go further south. The present price action was preceded by high volatility in the market (which lasted for more than two weeks). In the month of June, the price could continue going further south, reaching the demand levels at 18.0000 and 17.5000 respectively.
Source: Tallinex.com
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