Gold and Silver Price Analysis: May 6th, 2023
Gold prices reached all-time high levels at 2085 in a massively bullish week but failed to break below 1970, trading within this range. Last week, it was discussed that beyond 2005 levels, there would be more potential for upward movement, which has been reflected in its current trading. However, it has closed the week below 2020 levels, leaving a big shadow on the previous candle's upside. The next week's movement will be determined with the help of charts and indicators. It is important to note that trading gold within 1940-1950 levels is a very strong support zone, and even if it tries to break these levels, they will provide good support. The stronger the base, the taller the building, and that has happened in the last three weeks. On the daily charts, the top bottom has stabilized, and gold is getting support at around 1987 and 1940-1950 levels. If it trades above 2020 levels next week, it is likely to reach 2036, 2048, and then 2665, 2685 levels. The month has started on a bullish note, with higher highs and higher lows, but it is limiting its movement within a range of 1970-2085. It is suggested to observe this range for the next few days before taking a position.
Gold Prices:
Gold prices reached all-time high levels at 2085 in a massively bullish week, but failed to break below 1970, trading within this range. Beyond 2005 levels, there would be more potential for upward movement, which has been reflected in its current trading. However, it has closed the week below 2020 levels, leaving a big shadow on the previous candle's upside.
Support and Resistance Levels:
Trading gold within 1940-1950 levels is a very strong support zone, and even if it tries to break these levels, they will provide good support. The stronger the base, the taller the building, and that has happened in the last three weeks. On the daily charts, the top bottom has stabilized, and gold is getting support at around 1987 and 1940-1950 levels.
Technical Indicators:
The next week's movement will be determined with the help of charts and indicators. If it trades above 2020 levels next week, it is likely to reach 2036, 2048, and then 2665, 2685 levels.
Silver Prices:
Silver prices followed gold's lead, reaching a high of 35.50, but was met with resistance and has since traded within a range of 34.50-35.50. The daily charts show that silver is getting support at around 34.00 levels. If it breaks above 35.50, the next resistance levels are at 36.50 and 37.50.
Conclusion:
The month has started on a bullish note, with higher highs and higher lows, but both gold and silver are limiting their movements within a range. It is suggested to observe these ranges for the next few days before taking a position.
Disclaimer: The information provided is for educational and informational purposes only and should not be construed as financial or investment advice.
Comments