Gold (XAUUSD) & Silver Price Forecast: Gold Forms Ascending Triangle – Bulls Eye $4,855 Zone

Gold and Silver Consolidate as Geopolitics and Policy Signals Rebalance Demand

Gold and silver levelled out on April 10 after a pretty remarkable relief-driven surge the day before. It seemed like markets were having a second look at geopolitical risks and general economic signals before deciding where to go next. That initial rally – where gold was up by as much as 4% and silver by up to 8% in just one session – came after a temporary easing of Middle East tensions that followed a two-week ceasefire and tanker flows through the Strait of Hormuz slowly getting back on track – that’s a key route for some 20% of the world’s oil trade.

But since then, price movements have really settled down. Analysts reckon that’s because there’s still some uncertainty hanging around about whether the ceasefire will really stick. That’s keeping safe-haven asset demand pretty steady. Plus, is that the US dollar not doing so well and energy prices coming back down a bit have also had an impact on how people are trading these metals.

Now, more and more people are starting to look at what the Federal Reserve is going to do with interest rates – this is going to start to shape how much demand there is for non-interest paying assets.

Silver is a bit of a special case though – its value is influenced by industrial demand for things like solar panels and electronics, combined with a supply shortfall, that makes it more volatile than gold. Notwithstanding the recent drops, both metals have been up significantly so far this year – and that’s thanks to all the gold buying by central banks & other big investors.

Gold Builds Higher Lows Near $4,550 as Bullish Structure Tightens

Gold is trading around $4,713 and painting a picture of higher lows, all this happening while it’s hugging up against a rising trendline – which signals that there’s still some life in the bull run. Those recent candles are showing us smaller bodies with tails sticking out on both sides now, looks like we’ve had a bit of a pullback after the run-up.

The 50 day moving average has finally started to turn around, meanwhile the price is still sitting below the 200 day moving average at $4,800 which is now acting as a wall or a barrier to the upside. And just to make things even more interesting – you can see an ascending triangle forming up between $4,698 and $4,800, these two points offer us our support and resistance levels. The RSI on this one is right in the middle at 55 roughly – which suggests we’ve got a even knife-edge on momentum.

Trade idea: One idea could be to buy above $4,800 and target $4,855, and set a stop-loss just below $4,698.

Silver Holds $71 Support as Ascending Structure Signals Breakout Potential

Silver is sitting at $73.90 at the moment and doing a great job of keeping its head above the water at the $71.35 zone – a crucial area that’s been forming a up trendline. Price action has been consolidating with all sorts of mixed messages from the candles in recent days – and it looks like it’s had a bit of a pullback after that big up move we saw earlier, so it’s good to see accumulation.

The 50 day moving average has been acting as a kind of safety net, while the 200 day moving average at $76.50 still remains the big barrier to breaking through and making more progress. The RSI has also been staying steady, stuck in the middle at 50-55 – so that tells us we might have some room for further expansion. A break above $76.50 and we might see things kick off quite nicely and send the price towards $79.30 and $82.50.

Trade idea: One idea could be to buy above $76.50, and see if we can’t reach for $79.30, and just in case it doesn’t work out, set a stop-loss just below $71.35.