Technical Update - Gold broken key support. Silver dropping like a stone. How low can they go?
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Gold XAUUSD spot closed yesterday below key support at $1,780 there by confirming down trend on both short- and medium term. A down trend that is likely to take Gold down to 1,670. Support at 1,721.
RSI on daily is touching the RSI low in May where market bounced. We could see a similar scenario this time where Gold will try to get back above the 1,780. However, the down trend seems strong so it will most likely just be a brief pullback above the now resistance.
Silver XAGUSD broke its key support two weeks ago and is now trading below its 200 weekly SMA. Some support could be seen at the 0.618 retracement at 18.36 and at around 16.95.
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