Gold and Silver Prices Remain Significantly Bearish

GOLD (XAUUSD)
Dominant Bias: Bearish
Gold has been trending downwards in a significant mode since the middle of July 2014. From the supply level at 1344.80, the price has tested the demand level at 1225.50. This is a downward movement of close to 2000 points. The weakness in the market remains valid and the price may continue moving further downwards in spite of rallies that come its way occasionally. In fact, those rallies are really short-selling opportunities in the context of a downtrend. The price may end up reaching the demand levels at 1220.00 and 1210.00 successively. Nevertheless, this weakness is not going to last forever, for there is no such thing as an everlasting trend. It is likely that Gold would rally sustainably around November or December 2014.

SILVER (XAGUSD)
Dominant Bias: Bearish
Silver is also a bear market, having been dropping downwards since the middle of July 2014. From the resistance level at 21.5400, the price has gone south long enough to test the support level at 18.4200. This is a downward movement of more than 3100 points. Now, it is possible that the downwards trend might continue, breaking further levels and reaching the support levels at 18.3000 and 18.1000 respectively. The bears cannot hold sway for ever – for a northward turnaround is expected around November or December 2014.

Source: Tallinex.com

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