Technical Outlook Of Gold, Silver & US Dollar Index: 08.12.2017

GOLD

With the clear break of a year-long ascending trend-line, Gold seems less likely to stop its downturn unless meeting an intermediate upward slanting TL, at $1227; however, the $1235 might offer a small halt. Should Bullion Bears refrain to respect the $1227 support, the $1215, the $1205 and the $1200 consecutive rest-points can appear on the chart. On the contrary, oversold RSI may trigger the metal’s pullback if US Jobs data disappoint greenback buyers, which in-turn could reignite the importance of $1260 and the $1267-68 resistance-confluence, comprising 200-day SMA & support-turned-resistance line. In case if the pullback stretches beyond $1268 on a daily closing basis, the 50-day SMA level of $1279 and the $1285 mark may entertain traders before making them confront the $1298-99 resistance-line.

SILVER

Unlike Gold, Silver seems already bouncing off the $15.65-60 important support-zone, which together with oversold RSI indicates brighter chances of its recovery to $15.90 and then to the $16.15 resistances. Given the metal extends its up-move beyond $16.15, the $16.30, the $16.55 and the $16.70 might please the Bulls. Meanwhile, a daily close below $15.60 can further drag the metal to $15.45, the $15.18 and then to the $15.00 but its follow-on south-run may not hesitate in registering $14.58 as a price.

US Dollar Index [I.USDX]

Strong fundamental support wasn’t the only reason for recent U-turn of the US Dollar Index as 92.60-80 horizontal-line also played its role in propelling the gauge beyond 50-day SMA for the first time in more than a fortnight. Hence, the greenback index is likely heading towards 94.20 and then to the 94.45 at the moment but its consequent rise might find it hard to surpass the 95.10-20 horizontal-region, which if broken could quickly propel the quote to 200-day SMA level of 95.90. If the barometer of USD’s strength fails to sustain latest recovery, the 93.55 and the 93.11 could become immediate supports to watch ahead of looking at the 92.80-60 rest-zone. Should sellers continue dominating the momentum and drag the index below 92.60 on a daily closing basis, the 92.20, the 91.70 and the 91.00 may flash on their radar to target.

Cheers and Safe Trading,
Anil Panchal