Gold and Silver prices are trading solidly lower and are at their daily lows in late-morning dealings Friday.
"With US equities making all-time highs, the miners have continued to trade on lacklustre in the GDX , while some are now being sold for tax-loss. However, with equities stealing gold’s thunder, it’s amazing that the gold price has shown as much resilience as it has in the last few weeks.
Either way, the sector is due for a bounce within the next week or so as the miners are becoming over-sold on a short-term basis. When the inevitable bounce does take place, the big question miner investors will be asking themselves is “long-term bottom or bull-trap?”. Miners can begin the second leg of this new bull market. The gold sector has a history of false-moves before a major up-leg takes place, taking most participants out of position before moving higher
As I tried to explain in my previous GOLD forecasts, physical fundamentals are supporting the GOLD prices.
DXY rose 1.30% from October 5th when GOLD tested 1.263 and closed the day at 1265. And Gold price ended last week at 1.296 with DXY 94.94 3 months high
Even if we assume that DXY will rise towards 97 level, this may carry GOLD prices towards 1.247-1.250 levels. And this levels would be perfect buying opportunities for Mid- Long term trades.
Short term overview :
As seen on the , price tested 1.260 a few times and rejected. 1.264 is the 200 support. If the price breaks below this support, 1254 and 1.247 will be the next targets of XAUUSD .
On the smaller chart timeframes, the trend is . Price is below 50 and Kumo. Price needs to make H4 closings above 1.275 and 1.281 to continue upside movement towards 1.308.
Levels are clear for short term. 1.263 is the support, 1.281 is the resistance.
My short term trade strategy will be using pullbacks towards 1.263-1.265 as buying opportunity. My targets of those intraday trades will be 1.275 and 1.281. And I will wait for H4 closings above 1.283 to add LONG.