Gold pushed up overnight, building on gains from the previous two sessions. Gold fell below $3,300 in early trade on Wednesday before finding support just above $3,280. Now prices are bumping up against a mild area of resistance around $3,350.
Source: TN Trader
If gold can break above here, and hold it as support on any subsequent pullback, then its next upside target is $3,400 which is a more significant resistance level. The daily MACD is still around the neutral level as gains since Wednesday have been small, but steady.
So, there’s certainly some upside potential, although sentiment could change quickly on a failure to break above $3,350 in a convincing fashion.
Meanwhile, silver took the spotlight this morning as it burst above $37 per ounce to hit its highest level since September 2011. As with gold, clues as to where it goes next may well depend on how it behaves on any pullback.
The bulls will certainly be encouraged if $37 now holds as support. But traders are well aware of silver’s volatility, so should be treading carefully.
