Gold has recorded quite a big drop this week. However, with the price just confirming the double bottom, nothing much has changed in the overall chart. So what key level is there to overcome or break now? Gold is currently situated in this big triangle. From below, we can see strong support at the level of 1677 USD. If the price continued further and closed the weekly candle below the 1677 USD level, we could consider it bad news as some major correction would be on its way.
From up the price is still held by the trend. Until we overcome it, the gold will not turn bullish. However, as soon as the weekly candle closes over the trend line the gold will turn bullish and its price can continue going up again. With that being said, the space inside the triangle that the price needs to break out of is still large. For now, we will have to wait for the final break.
With a strong support line, silver looks quite similar. And similar to gold, silver must also maintain the level of 21.64 USD at all costs on the weekly chart.
On the other hand, we do not have a triangle pattern here, however, we have a bigger channel here. At this point, it is difficult to say whether it is an accumulation and price will go up or on the other hand, it is a distribution and price will go down. Anyway, silver is equally locked in this range between support and resistance levels. If the price were to move, it should overcome the local trend in the first place. However, the price of the second most traded precious metal will not move anywhere until that happens.
This week, we could witness a sharp downward movement on commodities. However, in the bigger picture, it does not mean anything for gold and silver.