Gold and Silver Daily Predictions
Gold
Short Term: Given that gold tried to break higher and reached 1685.05 but shy of a higher number we felt it may need to take a breather before moving higher. We start to be cautious from here as it reached the resistance level and only change to be more positive if other indicator allows (such as weakening in the US dollars). Staying on the side line is an option to see where gold finds support in the short run. We are guessing it could test 1672 before heading higher (this did happen on Wednesday). For Thursday, range trading could occur again as prices trying to test resistance and support. We are not surprise if gold take a slight dip but all eyes are on Chinese GDP numbers.
Medium Term: Support is at 1626 and a strong dip buying is available around that particular area. We are only bearish if it crosses 1650 below. In the meantime, it looks like gold may try to find support and build another base to test higher prices. However, we would like to highlight that buying pressure are easing off slightly as market awaits more data.
A risky short trade can be taken should gold fell below 1670 as it look for support at 1655. Should 1690 be taken out we look to buy and target 1702.
Silver
Short Term: We have seen that silver prices do indicate bullishness and that the rally extend much more than we thought. We were very cautious since prices did stay at 31.20 and 31.25 for a while (indecisive) before eventually breaking higher to 31.50 areas. The question now is whether this rally can be supported? We mark caution here and think shorting could be a better option unless silver break above 31.60 on the back of a weaker dollar.
Medium Term: We look to short silver heavily only at 30.00 in the medium term. We indicate in yesterday report that we would like to short silver at 31.35 areas as the signal shows potential weakness and prices may well try to find support. On the longer term outlook, we are bullish since there is a potential breakout on silver should it cross 31.60 where we look to buy and target 32.25 (assuming the gold silver ratio is in our favour). The last signal shows a top hammer head close which shows the bull could still be in control.
Look to buy at 31.65 and hold for 32.00 areas.
Economic Views
This coming Friday is the Chinese GDP year on year. We are aware of the rising dollar as bond yield are coming down. Oil in general is still strong at 94.12 areas.
| Currencies | Value | Change comment |
| Euro | 1.329 | Slightly weaker upon mixed comments from Euro leaders |
| AUD | 1.056 | Maintaining |
| JPY | 88.43 | Profit taking on the horizon but rally may sustain |
| US Index | 79.79 | A potential H and S pattern evolving should it break below 79.00 |
This article is written according to the author’s views and by no means indicates investment purpose. Opinions expressed at Sharps Pixley Ltd are those of the individual authors and do not necessarily represent the opinion of Sharps Pixley Ltd or its management, shareholders, affiliates and subsidiaries. Sharps Pixley Ltd has not verified the accuracy of any claim or statement made by any independent writer and is reserved as their own and Sharps Pixley Ltd is not accountable for their input. Any opinions, research, analysis, prices or other information contained on this website, by Sharps Pixley Ltd, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. Sharps Pixley Ltd will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The data contained on this website is not necessarily real-time or accurate.
Robert Jilles
Sharps Pixley, London
www.sharpspixley.com
