Gold fell below $1,300 and straight into a Demand Zone.
Gold dropped on Federal Reserve Chair Janet Yellen’s comments that the Federal Reserve should be wary of raising rates too gradually. The market sold off on Gold in response and bought U.S. Dollars, which explains the chart below of XAUUSD.
The price went into the demand zone, but failed to pop it and promptly rose back above it. Silver prices also fell, but on a XAU/XAG chart, which is conveniently included in the chart above, Gold was falling at a much more substantial rate than Silver. The Gold to Silver ratio in general has been falling lately back down toward pre-Summer levels.
On a Daily Chart, the Double Top dual high point of the First Half of 2017 still remains a critical price level. It’s not terribly surprising that the close of the Daily Price of Gold does not want to crack the 1290.762 point, which is the Close after the peak of the First Half of 2017. It would require a sudden break downward to break this support level just like it did in late August 2017 when the price jumped and closed at annual highs.
The price of Silver has declined in the month of September, much like Gold. It’s not terribly surprising for them to operate in tandem. However, the ratio between the two changes due to the rate of change in each commodity’s spot price. On an hourly chart, Silver has been sitting in a demand zone and has not broken it. It’s a zone of support and it is still rather unknown whether it will pop out of the bottom or the top once again. An untested level and then a tested level await should the price move North.
The Daily chart for Silver tells us one thing that is clearly seen and another you have to look for in order to get some answers. While 16.24 is an obvious support zone and 17.92 is the bottom of a tested resistance zone, the current price is re-engaged with a price level associated with reversals and continuations for more than a year.
It’s an interesting technical look at the commodities Gold and Silver. If you don’t want to be bothered looking at charts, nobody blames you. There is a way to get into this market and not have to monitor a screen or spend time testing code like crazy. And no, you do not need some scammy mentor either. Find out more about Freevestor’s Trading Signal portfolio services, they are absolutely FREE!