Gold and Silver Pull Back after Making Significant Gains

GOLD (XAUUSD)
Dominant Bias: Bullish
Gold has been given a new lease of energy which has taken it upwards in a significant mode. From the support level at 1240.50 (a formidable bottom), the price skyrocketed and tested the resistance level at 1284.60. Although the price is currently experiencing a pullback, it is expected that it would move further upwards, possibly reaching another resistance level at 1292.00. This pullback is normal – it is an opportunity for the bulls to buy cheaper as things go on sale in the context of an uptrend. However, the pullback must not go below the support level at 1266.00; so as not to pose a threat to the current bullish bias.

SILVER (XAGUSD)
Dominant Bias: Bullish
Silver also has turned from being a bear market to being a bullish one. An upward move of nearly 1200 points from the demand level at 18.6000 is formidable enough to force the bears to reconsider their positions. The price topped at the supply level of 19.8400 before it began to retrace. This southward retracement would, nevertheless, be limited. It ought not to go below the demand level at 19.4400; otherwise the bullish bias would be jeopardized. At this juncture, the price may turn back upwards and retest the supply level at 19.8400. Should the bulls hold out long enough in their attempt to push the price upwards, the price may close above the supply level.

Source: Tallinex.com

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