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Gold and Silver Prices Hold Steady Within Consolidation Zone


xs.com

21-06-2023 US Opening

In the latest market update, both gold and silver remained range-bound following a quiet trading day. Traders analyzed the price movements during the Asian session, noting specific resistance levels and exploring potential trading positions for profit. This article will delve into the key points discussed, examining the charts and indicators to provide insights into the expected direction for gold and silver in the upcoming U.S. session.


Gold Analysis:

  • Gold is currently consolidating within a specific range, displaying higher lows and lower highs.

  • The resistance levels at 1938 and 1940 have proved formidable, with the price unable to break past them.

  • Recent candles have shown lower highs and higher lows within the 1930 to 1936 range.

  • It is recommended to consider buying at 1936 with a trading stop loss at 1942.

  • Further resistance levels to watch are 1945 and 1950, with a potential reversal if gold surpasses 1960.

  • Moving averages exhibit divergence, and the stockistic and MACD indicators are bearish, indicating a cautious trading approach.

  • A breakout below 1930 may signal a downward trend, with potential targets at 1925.5 and 1920.

Silver Analysis:

  • Silver witnessed a drop followed by a retracement, but it has now started to decline again.

  • If silver stays above previous lows at 2220 to 2260 levels, it could potentially reverse its trend.

  • A breakout above 2420 should be considered a complete reversal and an indication of upward movement.

  • Silver currently exhibits consolidation with resistance at 2310 and 2312 levels.

  • A break above 2320 would support a rise, while staying below 2300 could lead to a drop.

  • Consider buying at 2315, but wait for a breach of 2320 for a more secure position.

  • Moving averages show divergence, and indicators like stochastic, MACD, and RSI suggest a retracement phase.

  • The possibility of a reversal exists if silver trades above 2315-2320, targeting levels around 2340.

Conclusion: Gold and silver prices remained within their respective consolidation zones during the recent trading session. Traders should exercise caution and closely monitor key resistance and support levels for potential breakout or reversal signals. The charts and indicators indicate a retracement phase, urging traders to trade with trailing stop losses. While gold and silver show signs of divergent moving averages, the market remains uncertain, demanding vigilance and prudent decision-making to maximize trading opportunities.



Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. Trading in gold and silver involves risks, and readers should conduct their own research and consult with a professional before making any investment decisions.

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