Gold and Silver Technical Update

Prev: Gold and Silver Soften as Pessimism Subsides (7/20)

Gold (XAU/USD)
gold 7/27/2011
- The market is staying above the 1608 pivot (high from last week), and showing bullish continuation as the RSI in the daily chart breaks back above 70.
- A break below 1608 needed in upcoming sessions if the rally is to be stalled.
- As we near the deadline for the debt ceiling, uncertainty is fueling safe haven like the CHF and gold.
- A range breakout projection targets 1670; A swing projection targets 1725.

Silver (XAG/USD)
Silver 7/27/2011 Daily Chart
- Silver also broke above last week's high and is continuation a bullish run in the short-term, although we are still within the context of consolidation.
- In this respect, the market is in consolidation with a bullish bias in the medium- term. In the short-term it is bullish.
- In the context of consolidation, the 43.00 and 45.85 are respectively 61.8% and 78.6%.
- With gold leading the way, silver also has a chance to reach 48.85 high.

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Fan Yang CMT
Chief Technical Strategist
FXTimes