Precious metals have eased slightly in the wake of the elevated CPI report. Both gold and silver currently test significant levels of resistance
With gold breaking new ground, resistance targets are difficult to come by. Therefore, the 1.618% extension of the major 2020 to 2022 major decline helps project the next upside challenge at $2360. Price action does appear to have pulled away from the level but the move is minor at this juncture.data which propelled yields and the dollar higher – effectively adding a premium to the price of gold for overseas buyers.
The sheer pace of the advance suggests the invalidation levels for the bullish outlook appear at the prior all-time high of $2195. Even a move to the $2222 level wouldn’t necessarily rule out a further bullish move, but it may prompt a reassessment of the bullish bias. Silver, like gold, continues its bullish advance but has recently hit a zone of resistance that appeared in late 2020, and early 2021. The zone appears around $28.40 and capped silver prices around theboom. The next target to the upside is $30.10 which represents a full retracement of the 2021 to 2022 decline.The daily chart hones in on recent price action which appears to stabilise beneath the zone of resistance.
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