Technical review on Gold and Silver for October 28, 2014

GOLD: Since July 2014, Gold has been very weak. This market dropped seriously from the month of July 2014, testing the support level at 1182.94 in October 2014. Since then, the market has been making some serious attempts to go bullish. The market is thus bullish in the medium-term, but bearish in the near-term. The current bearish correction in the market has been strong enough to generate a ‘sell’ signal in the near-term. Therefore, the price may go as low as the support level at 1200.00 before there would be any sustained rally that may pan out for the rest of the year 2014. This means that the sellers can target some bearish movement in the near-term, while in the medium-term, the buyers may look forward to a rally that could go on for the rest of this year.

SILVER: Since July 2014, Silver has dropped by over 4800 points, just like its Gold counterpart. Gold and Silver are normally correlated in a positive mode, but the latter has been moving largely sideways since the beginning of the month of October 2014. This has resulted in a big base, from where the price would eventually break out, reaching the resistance level at 18.200 before the end of this year. Before this time, short-term sellers could speculate on the possibility of the price testing the support level at 16.800.

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