Technical Overview of Gold, Silver & US Dollar Index: 25.05.2018

GOLD

Even if recent surge in Geo-political pressure fueled the Gold prices towards marking more than a week’s high, the yellow metal is still left to surpass the $1307-08 resistance-confluence, comprising 200-day SMA & six-week old descending TL, failing to which can trigger its pullback to $1300 round-figure and then to the $1297 support-level. Should the quote declines below $1297, the $1293 and $1288 are likely following rests that it can take ahead of challenging the $1281 trend-line support. Alternatively, an upside break of $1308 on a daily closing basis can escalate the safe-haven’s recovery to $1315 and to the $1323 but the 100-day SMA level of $1327 could restrict its further rise. Assuming that the risk-off sentiment continue remaining present after $1327 break, the $1333 & $1341 could flash in the Bulls’ radars to target.

SILVER

Unlike Gold, the Silver still has some upside room before confronting immediate important resistance, i.e. $16.80 horizontal-line; though, overbought RSI on H4 signals the metals’ inability to conquer the same barrier. If at all the quote clears the $16.80 mark, the $17.00, the $17.15 and the $17.25 may entertain the buyers before questioning their strength by the recent high of $17.35. Meanwhile, $16.50 can offer nearby support to the metal ahead of reigniting the importance of $16.30 trend-line number. Given the sellers’ refrain to respect the $16.30, the $16.20 and the $16.00 can come-back on the chart.

US Dollar Index [I.USDX]

With the 94.15-25 horizontal-resistance again playing its role, the US Dollar Index dropped to more than a month-long upward slanting trend-line, at 93.70 now, and seems bouncing off the same on Friday. As a result, the 94.15-25 area regains the market attention, breaking which the greenback gauge can visit the 94.50, the 94.70 and the 95.00 consecutive resistances. However, its rally beyond 95.00 can please the USD optimists with the 95.50, the 95.80 and the 96.00 levels. On the downside, a daily close beneath the 93.70 TL can quickly drag the index to 93.35 and 92.70 supports whereas 92.30 & 91.80 may make the Bears happy afterwards. During the additional declines of the index below 91.80, the 91.55 and the 91.00 could receive analysts’ eye-share.

Cheers and Safe Trading,
Anil Panchal