A massive volatility could have been observed on the precious metals market recently. Daily gold price swings exceeded 4% while silver price dropped 10% yesterday alone. This week we will take a look at 3 precious metals from a technical point of view - gold, silver and platinum.
SILVER
Precious metals prices have been very volatile recently. After a strong sell-off related to the coronavirus panic, silver started an upward rally. However, upward momentum faded after the price of silver reached afresh YTD highs. Price dropped more than 10% yesterday. Silver launched today's trading lower but a recovery is underway. Looking at the chart, we can see that the earlier-broken support at $16.1 acts as a key resistance now. As long as the price sits below it, the downward correction may resume. On the other hand, if we see a break back above it, stronger upward impulse may be on the cards.
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Silver H4 interval. Source: xStation
GOLD
Unusual volatility can be spotted on the gold market as well. Gold price slumped more than 4.5% yesterday and continued to move lower overnight. However, just as in case of silver, strong recovery started during European trading hours and price returned above $1,900. Nevertheless, a key level to watch, marked by 2011 highes, can be found at the $1920 handle. If buyers manage to stay above it, the upward rally may continue. On the other hand, break back below may lead to bigger decline. Looking at the daily time frame, the support at $1,830 is a key long-term level to watch. According to the Overbalance methodology ,as long as the price sits above the lower limit of 1:1 structure , trend remains upward.
GOLD D1 interval. Source: xStation
PLATINUM
Slightly lower volatility, compared to silver, can be seen on the platinum market. This precious medal registered a drop of 3% yesterday. Looking at the chart from a technical point of view, we can see that the key support is located in the vicinity of $900 handle. Zone marked with green colour results from the lower limit of 1:1 structure and previous price reactions. This place is also strengthened by the lower limit of the upward channel. As long as platinum is trading within the channel, steady upward move looks to be the base case scenario. The nearest resistance to watch lies at $1,025, where the YTD highs are located.
PLATINUM D1 interval. Source: xStation5
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