Trending
Commodities
  • WHEAT
    338.91 USD 0.31%
  • WTIOIL
    76.28 USD -2.46%
  • XAG
    21.45 USD -0.81%
  • XAU
    1754.55 USD -0.75%
  • XCU
    3.62 USD -1.12%
  • XPD
    1779 USD -2.93%
  • XPT
    980 USD 1.02%
  • ALU
    2372.66 USD -0.26%
  • RICE
    18.14 USD 0%
  • BRENTOIL
    83.63 USD 0.11%
  • SOYBEAN
    14.34 USD 0.35%
  • NG
    7.02 USD -2.1%

How does gold and silver look after the dump?

Few weeks ago, we saw a major crash in the commodity markets, with gold and silver losing value significantly. Were these assets able to recover from the crash and where are they heading now?

Gold

If we look at the chart of the gold, we can clearly see when the dump happened. It only took gold about a month to recover to the predump levels, which means that it is attacking the resistance around 1 832 USD. Therefore, we can clearly see that the dump in the markets did not lead to any long term complications. We can therefore state that this dump was in the long run meaningless and not somehow crucial.

Gold approaching long term resistance Gold approaching long term resistance, Source: Author´s analysis

Did daily chart change?

If we look at the daily chart, we also cannot see any significant change. This huge dump got only to the levels of 1 677 USD, which is a support level. A move under this area would probably cause more troubles, however, that did not happen. Daily chart thus remains the same and we only need to wait for a break from the forming descending triangle.

Gold-short term analysis Short term chart of gold, Source: Author´s analysis

Silver

Silver and gold are in many cases brought together. The main movement was seen on gold, yet, since silver tends to copy movements of gold, it also saw a major crash. But, just like gold, silver was also able to hold the main support, which means, it can now rise to the levels of 24.56 USD. This is an area of strong long term resistance. Moreover a daily trendline is also in this area, which means that silver can experience real problems. Compared to gold, which is almost back at the same predump levels, silver has still a long way to go to catch up what it lost during the dump.

Silver daily chart Short term outlook on silver, Source: Author´s analysis

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

Comments

Comments are closed.