Where is the support and resistance for gold and silver?
As the Thanksgiving holiday in the US approaches, the precious metals, as well as most other markets, are understandably seeing volumes and ranges decrease. Yesterday, Moody’s downgraded France’s bond rating from AAA to Aa1 which caused the euro to briefly collapse before it swiftly recovered from its lows. The euro’s push upwards accompanied rallying equity and crude markets which in turn encouraged buyers to come in and lift precious metals offers. Gold managed to achieve an important close above $1,730, an area which it has pressured steadily over the past three weeks but has not convincingly broken.
If today’s $6 range in gold is any indication, the rest of the week should be similarly quiet for the precious metals. Gold’s range remains defined between support at the psychological figure of $1,700 and resistance at the 50 day moving average of $1,741.70. Silver rallied even more impressively than gold yesterday but stopped in its tracks at the 50 day moving average of $33.18. This has now formed a double top from yesterday to today and is fairly strong short term resistance.
As for economic news, Fed Chairman Ben Bernanke speaks at 12:15 AM EST which should be closely monitored.
