Gold and Silver - “We just see the latest correction as a perfect opportunity to get into the trade again.”

Gold and Silver - “We just see the latest correction as a perfect opportunity to get into the trade again.”

10 April 2015, 15:11
Sergey Golubev
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Gold bounced off of its $1,140 to $1,150 support zone after the March FOMC meeting that sent dollar reeling, but has since struggled at its key psychological level at $1,200. If gold’s bounce continues, $1,300 (the January high) is the next resistance level to watch. A decisive break below the $1,140 to $1,150 support zone or above the $1,300 resistance level is necessary to confirm gold’s next major directional move.

Similar to gold, silver is trading in a range between $15 and $18.50. One of these levels must be broken to signal the next major directional move.

A convincing breakout in the Dollar Index may lead to further gains for the dollar and weakness for precious metals, while a breakdown could result in more dollar weakness and further bullish action for gold and silver. Petr Krpata, the world’s most accurate currency forecaster, is skeptical of the dollar’s pullback and stated, “We just see the latest correction as a perfect opportunity to get into the trade again.”

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