Downtrend continued for gold as it fell drastically on Friday to close
at $1,485.65 down $74.4. An Engulfing Bearish formation has occurred which
indicates continuation of the downward trend. The next target will be at
$1,425, which could later extend to $1,395. Meanwhile, any upward retracement
will face resistance around $1,500 mark. The RSI and the MACD have continued
with their declining trend, supporting a bearish view. Investors are
recommended to ‘Sell’, with risk defined above $1,511. The support and
resistance are at $1,431 and $1,520,
respectively.
Silver
extended its loss on Friday to close at $26.05, down $1.54. If the decline
continues, the target will be at $23.93, a 123.6% retracement on the rise from
$26.11 to $35.35. Meanwhile, the short and medium term moving averages are on
a declining trend supporting a negative trend ahead. Moreover, the RSI has
moved down and the MACD has generated a sell signal, supporting the above
view. We recommend investors to stay sellers below $26.59. The support and
resistance for today’s session are at $24.31 and $26.72,
respectively.
