Gold (XAUUSD) & Silver Price Forecast: China Buying Supports Floor — Can Gold Hold While Silver Drops? (original) (raw)

Gold – Chart

Gold spot is trading at 4,330onthe4Htimeframechart.Afterbreakingoutbelowthefloorofthebluedescendingchannelnear4,330 on the 4H time frame chart. After breaking out below the floor of the blue descending channel near 4,330onthe4Htimeframechart.Afterbreakingoutbelowthefloorofthebluedescendingchannelnear4,360 and the descending red 50-period moving average near 4,460,redmomentumcandlespushedgoldspotlower.Apairofbearishengulfingcandlesprintingfreshlowerlowsfromanintradayhighof4,460, red momentum candles pushed gold spot lower. A pair of bearish engulfing candles printing fresh lower lows from an intraday high of 4,460,redmomentumcandlespushedgoldspotlower.Apairofbearishengulfingcandlesprintingfreshlowerlowsfromanintradayhighof4,535 have a long lower wick that confirms continued distribution. With gold spot failing to hold multiple key supports, there is little to indicate a floor, aside from the 4,300to4,300 to 4,300to4,239 Fibonacci extension.

The relative strength index (RSI) holds below 45, without indicating oversold conditions for a bounce, which confirms a strong loss of momentum and lack of demand. The volume profile shows 4,460to4,460 to 4,460to4,500 as the failed fair-value area that is dominated by sellers. A white line of descent from recent highs at $4,595 caps any near-term bounce or technical rebound.

The overall structure remains decisively bearish below the 4,460areaasitslidesinsidethebroaderchannelthatstartedfromApril’spricehighs,whichwillholdfirmashighertimeframeresistanceat4,460 area as it slides inside the broader channel that started from April’s price highs, which will hold firm as higher timeframe resistance at 4,460areaasitslidesinsidethebroaderchannelthatstartedfromApril’spricehighs,whichwillholdfirmashighertimeframeresistanceat4,595. Clean formation continues in the shape of lower highs and lower lows, and a lack of buyer interest on any price recovery, indicating control by the sellers.

Trade Idea: Sell Gold Spot at 4,330,withapricetargetof4,330, with a price target of 4,330,withapricetargetof4,239, with a protective stop at $4,400.