Monthly Technical Reviews for Gold and Silver (October 2015)

GOLD (XAUUSD)
Dominant bias: Bearish
Ignoring the intermittent rallies (which were sometimes strong enough to cause short-term threats to the bearish bias), Gold has now been trending downwards for several weeks. On October 2, price spiked up hard - threatening the bearish bias again; but price needs to break the resistance levels at 1160.00 and 1170.00 to achieve that outcome. If successful, it will lead to a strong bullish phase which could continue until the end of this year. Until that occurs, buyers should approach the market with caution as price could still go down to test the support levels at 1105.00 and 1100.00.

SILVER (XAGUSD)
Dominant bias: Bearish
Just as with Gold, Silver shot upwards on October 2 without much retracement. From the demand level at 14.3600, price leapt upward and tested the supply level at 15.2800 - hardly easing in the process. This is a great challenge to the current bearish outlook on Silver (there is a Bearish Confirmation Pattern in the market), which could render the bias invalid if price gets above the supply levels at 15.5000 and 15.7000. If that happens, bulls might be able to keep pushing price upwards for the rest of the year. Meanwhile, the demand levels at 14.4000 and 14.2000 could be tested in the event that the bearish movement continues.

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