Gold
Gold last week started off from $1787 on Monday to remain just below $1800 . On Tuesday and Wednesday it attempted to trade near its first level of resistance at $1809 , but it then fell back to fall to as low as $1746 levels and bounced back to $1767. Finally it settled the week near $1752.U.S Treasury bond marked remarkable gains behind the speculation that Fed might change the Taper policy sooner than later might have supported a U.S dollar rally . A strong U.S dollar forces against commodities and currency to give up its gains.
Technically, gold was rejected from its first level of resistance at $1809 last week. Sup-port at $1770 were easily broken to fall below $1750 levels quickly. Gold did attempted to gain back above $1770 but gains were restricted. After two weeks of lower close on weekly chart gold’s resistance is seen at $1760 and $1770, whereas next support comes in at $1735 the 23.6% retracement levels of (1680 – 1830 recent high and low).
Silver
As we anticipated last week silver has quickly fallen towards $22 levels. Previous year, silver was seen at the same levels at same time period now with volume of sellers more active puts a risk of breaking the $22 level of support for silver. On July 2020 ,silver marked gains from $19 to 22 within a weeks time, which brings in the same level of risk if it breaks the support at $22 now to trade $19 swiftly. Given a firm break of support levels, silver could be seen stabilizing at $16.80 / $17 levels, where we see a chart based congestion to consolidate around that level.
Data and Events for this week
- S FOMC Statement on Wednesday 22nd
- U.S FED Chair Powell speech on Friday 24th