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Preciousmetals

XAUUSD At Daily Support LevelAfter a significant big drop, price approached to the daily support level and was pushed to the upside. Currently, in the daily time frame, we can see a bullish candle for today with an upside pressure, but the main trend and the price structure are obviously still bearish. For now, we should wait to see if the daily support level will hold and push the price to the upside or not. First signal of this evidence would be a daily closure above the yesterday’s candle at 1711, if this happens, we can expect a little rise to 1717.45 which is a resistance level in 4H time frame. Then, if price breaks 1717.45, there is a high probability of an upside reverse and a growth to 1735.50 and 1758.50 On the other side, if the daily support level (1696) could not hold the price and was broken to the downside, the next target for price would be around 1675.
FX:XAUUSDLong
by Mahtab_Tradia
11
XAUUSD Bullish PatternWe have seen a significant drop on XAUUSD in the past few weeks to 1720 which was very close to my expectation in my previous analysis of gold, a drop to 1715. But, currently, we can see a bullish pressure and a higher low structure in the 1H time frame. If we take a look at the last movement of price, it had a strong upside move and then a weak downside correction which has made a bullish flag pattern as well. Although this is a risky trade, If price breaks the flag pattern and closes above this formation which is above 1738 in 1H, we can expect a rise on XAUUSD to 1751.
FX:XAUUSDLong
by Mahtab_Tradia
9
GOLD SILVER RATIO as a guide for TRADING DECISIONSCenturies ago when the gold and silver standards existed the Gold to Silver ratio was fixed at 15. Decades ago the ratio was 55. The US dropped the gold standard in 1971 ( Thanks Richard Nixon ?) In floating since then, the ratio in modern times has been 75/ It can be said that below 75 gold is undervalued in comparison with silver while over 75 it is overvalued in comparison. At present since April 15th ( IRS demand tax returns and payments) the ratio has consistently risen. Trading Ideas from this: Traditionally, an investor would now sell gold and buy silver at a ratio of 75 to 1 meaning sell quantity of gold for instance 5 ounces and then buy 375 ounces of silver with the proceeds. Using the XAUUSD and ZAGUSD, a swing trader would short sell spot gold and go long on spot silver. An options trader would buy a put contracts in a gold junior miner stock and then hedge with call contracts of equal value in a silver junior miner stock The above, are basic examples of how to use the gold to silver ratio as a basis in trading decisions. The link below is a more detailed explanation of this.
OANDA:XAUUSD
by AwesomeAvani
2
Not a silver lining.Silver is special as it is both an industrial and precious metal. So, let’s look at Silver from both points of view to identify what seems to be dimming the shine on this metal. As a precious metal, we can compare silver with the dollar and yield as both affect the demand for precious metals. Dollar and silver are generally negatively correlated, with a stronger dollar leading to weaker silver. In the chart below, we see this relationship at play until the start of February 2022, when it started to weaken. It seems the effect of a rapidly strengthening dollar has not been reflected in the prices of silver and we expect this gap to close, resulting in lower silver prices. The 10-year yield also provides us with a reference to understand where silver might trade at. A high yield environment is often considered headwind for precious metals as investors prefer holding yield-generating assets in such periods. In the chart below, we see can observe the roughly negative relationship between yields and silver, with periods of lower rates showing higher silver prices and vice versa. With the Federal Reserve indicating that they are still not done with the rate hikes to combat inflation, silver might take a dent in upcoming rate hikes. Secondly, we can look at business and consumer confidence to gauge the potential demand for silver as an industrial metal. Generally, higher business and consumer confidence indicate expansionary periods, which translate to higher demand for industrial metals. With the University of Michigan consumer confidence index at a low and United States Business Confidence Index turning lower, such negative outlook will slow demand for silver as a form of industrial metal, potentially adding resistance to prices. On the technical front, silver is sitting right on the 19-dollar level, which has acted as a key support & resistance level over the past 10 years. An attempt to breach this level a few weeks ago was rejected and prices are now back to retest this support. On a shorter timeframe, we also see silver in a descending channel pattern indicating a downwards continuation pattern. With the dollar strengthening, higher yields, and downbeat business and consumer confidence, the macro backdrop for silver does not look rosy. Overlaying that with the bearish technical price action, we think Silver is likely to struggle. Entry at 18.960, stops at 20.160. Targets at 16.620. The charts above were generated using CME’s Real-Time data available on TradingView. Inspirante Trading Solutions is subscribed to both TradingView Premium and CME Real-time Market Data which allows us to identify trading set-ups in real-time and express our market opinions. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com Disclaimer: The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios.
COMEX:SI1!Short
by inspirante
17
The Gold Odyssey - a different story emergesPreviously, since Donald Trump started the US-China trade war, Gold has been on a clear trend forming a Cup & Handle pattern in the weekly chart. This was covered in earlier posts with decent accuracy, until recently. It appears that the Gold volatility is significantly heightened, to the extent that the the Handle may have been broken. The weekly Gold chart shows many recent support failures, especially since April 2022. The past week appears to have failed breaking above the weekly 55EMA, and clocked a long bearish marubozu-like bearish candle that closed below the support range. Although the technical indicators are still looking somewhat less bearish, the weeks to come look bad for Gold really. The daily chart shows similar patterns of breakdown, with a resistance failure, from a lower high that came from a Bearish Engulfing pattern. This followed through for the week where the 55EMA was again broken down. Technical indicators appear bearish too, especially with the MACD crossing under zero. Gold is not going to do well for a while, so listen to what the charts are saying... very clear bearish message. Look for 1700.
COMEX:GC1!Short
by Auguraltrader
XAUUSD Bearish PressureAs you see in the 4H chart, XAUUSD was moving in an ascending parallel channel and after rising to 1807 which was the highest price for it in the past few days, price could not grow more and failed to reach the the channel’s upper band in its last upside move and dropped sharply. Currently, we can see the downside pressure on price and it is trying to break the channel’s lower band. There is a support level around 1783 which has pushed the price for several times in the past but it doesn’t seem to be strong. If price breaks the red support zone around 1783 and closes a bearish candle below this level, I expect more drop on XAUUSD towards the next support area which would be around 1772-1769
FX:XAUUSDShort
by Mahtab_Tradia
7
XAUUSD: Wedge PatternAs you see in the 4H time frame, price is in an uptrend and has made a higher high and a higher low. Currently, price is moving in a rising wedge and is moving towards the resistance level at 1795. If price breaks the resistance level and closes a bullish confirmation candle in lower time frame (1H) above this level, I expect more rise on XAUUSD towards the next resistance level around 1811. On the other side, if price gets rejected from 1795 and closed a bearish candle below this level, since rising wedges usually broken out to the downside, we can expect a drop on price towards the support levels at 1765 and 1755.
FX:XAUUSDLong
by Mahtab_Tradia
5