Gold, Platinum and Silver Price Forecasts

  • Commodities Analysis

The price of precious metals gold , platinum and silver have shown some bullish intent in recent weeks, although gains have tempered leading into the Federal Open Market Committee (FOMC) meeting minutes .

While much of near-term direction for these will be dictated by movements in the dollar, the technical view is moderately bullish over the near term.

Gold

Gold


Source: IG

The price of gold has recently broken above trendline and horizontal resistance (1735) before starting to pullback from overbought territory. The initial move higher sees the 20-day simple moving average (red line) crossing above the 50-day simple moving average (green line) suggesting that the short to medium term trends having reversed from down to up.

The price is now finding support on the 1735 level which had previously acted as resistance.

For long entry we are looking for confirmation that the pullback has ended and that the short to medium term uptrends are continuing. To satisfy this criteria, we would like to see positive price action with a close above the 1750 level. In this scenario, 1785 and 1805 become respective upside targets from the move, while a close below 1735 could be used as a failure level for the setup (should it manifest).

Platinum

Platinum

Source: IG

The price of platinum has recently broken out of a broad range trading environment (between levels 830 and 970), before rallying to a new short-term high at 1060.

Since reaching this high the price has pulled back to support (previously resistance) at 970. Currently the platinum price looks to be reversing off this support level possibly setting up to renew gains.

The 20-, 50- and 200-day simple moving averages (red, green and blue lines) on our chart support the notion that the trend bias for the precious metal remains up.

1060 becomes the next upside resistance target favoured from the reversal off support. Traders who are long might consider using a close below the 970-support level as a stop loss indication for the trade.

Silver

Silver

Source: IG

The price of silver has also recently broken out of a broad range trading environment (between levels 18.15 and 20.80), before rallying to a new short-term high at 22.25.

Since reaching this high the price has pulled back to support (previously resistance) at 2080. Currently the price of silver looks to be reversing off this support level possibly setting up to renew gains.
The 20-, 50- and 200-day simple moving averages (red, green and blue lines) on our chart supports the notion that the trend bias for the precious metal remains up.

22.25 becomes the next upside resistance target favoured from the reversal off support. Traders who are long might consider using a close below the 2080-support level as a stop loss indication for the trade.

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