XAU/USD, XAG/USD Defeated by Dollar Strength

Gold Price, Silver Price Weekly Technical Outlook:

Gold price (XAU/USD) drops below major support, threatening to make way toward $1,800.
Silver price (XAG/USD) eases below 200-day MA (moving average, progressing to $21.00.
CCI (commodity channel index) remains in oversold territory. Can prices break the persistent downtrend?

Recommended by Tammy Da Costa

How to Trade Gold

Gold Price Outlook:

Gold prices have been under pressure this week, suffering from the prospects of higher rates and a stronger US Dollar.

With four consecutive weeks of declines attributing to the precious metal’s move, a break of prior support at $1,830 has assisted in driving prices lower.

While Gold futures remain vulnerable to a stronger greenback, the 50-week MA (moving average) has formed an additional layer of support at $1,808.

As technical levels highlight the pressure that has been placed on the commodity over the past month, the CCI (commodity channel) continues to suggest that the safe-haven asset may be oversold.

Gold Price Chart (GC1!) – Daily

Chart prepared byTammy Da Costausing TradingView

For the bear trend to gain traction, a break below $1,800 could allow fuel the momentum of the downtrend, pushing prices toward the next zone of technical significance at $1,790.

Silver Price Outlook

Following their major counterpart, Silver futures have fallen to trendline support, at the key psychological level of $21.00. With the CCI also testing oversold territory, the formation of a doji candle on the daily chart is indicative of indecision. With prices currently testing the 200-day MA at $21,22, a move lower and a breach of $21.00 could assist in facilitating a move lower, bringing the mid-point of the 2020 – 2021 move back into play at $20.90.