Gold and Silver are likely in a corrective state after fantastic gains in the late summer and early fall. Where might we expect some support? Take a look at the chart below which shows Gold at the top and Silver at the bottom.
Gold has lateral support at $1325. Trendline support will hit $1300 at the end of this month and the 100-day moving average will be slightly below that. Over the next few days and weeks, we’ll focus on $1300 to $1325.
Meanwhile, Silver has lateral support at $25 and Fibonacci support at $24.75.
Of course sentiment also factors into where we anticipate bottoms. Investors should also consult public opinion polls, options activity and commitment of traders reports. These are some of the things we look at, in our premium service, which offers a free 14-day trial.
Jordan Roy-Byrne, CMT