By NewsBlogger Due to a dovish Federal Reserve, gold prices have reached a record high above $2,200, while silver prices are trading in the $24.750 range. Technical analysis indicates potential bearish momentum.
At a glance
- Gold hits record high above $2,200 driven by dovish Federal Reserve
- Silver prices trading in $24.750s range, with the potential to drop to the lower 23.000s range
- Silver forms a Bearish Engulfing Japanese candlestick pattern, MACD indicator at risk of crossing below the signal line
- If silver breaks above $25.770 highs, it could signal an uptrend extension
- Analysts predict a potential target of $28.524 if silver continues its bullish momentum
The details
Gold and silver prices have been in the spotlight recently, with gold hitting a record high above $2,200 for the first time, driven by a dovish Federal Reserve.
Economists at MUFG Bank and strategists at Commerzbank are carefully examining the gold outlook in light of this development.
Silver Prices
On the other hand, silver prices (XAG/USD) were trading in the $24.750s range on Friday.
Silver briefly touched around $25.700 before reversing lower.
Technical analysis indicates that silver formed a Bearish Engulfing Japanese candlestick pattern on the daily chart on Thursday.
The Moving Average Convergence/Divergence (MACD) momentum indicator is also at risk of crossing below its signal line.
A break below $24.405 could potentially lead to a target in the lower 23.000s range.
However, if silver manages to break back above the $25.770 highs of Thursday, it could signal a possible extension of the uptrend.
Analysts’ Predictions
A decisive break above the range highs would indicate even more bullish momentum.
Analysts suggest that a move higher could reach a conservative target at the 0.618 extrapolation of the range height from the breakout point, with a potential target at $28.524.
The precious metals market is currently experiencing significant volatility, and traders are closely monitoring these price movements to make informed investment decisions.
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Facts attribution
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| fxstreet.com |
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| – Gold has reached above $2,200 for the first time due to a dovish Fed – Economists at MUFG Bank are analyzing the outlook for gold |
| fxstreet.com |
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| – Gold reached a new record high of $2,200 after the Fed meeting – Strategists at Commerzbank are analyzing the outlook for gold |
| fxstreet.com |
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| – Silver price (XAG/USD) is trading in the $24.750s on Friday – Silver touched the top of a multi-month range at roughly $25.700 and reversed lower – Silver formed a Bearish Engulfing Japanese candlestick pattern on the daily chart on Thursday – The Moving Average Convergence/ Divergence (MACD) momentum indicator is threatening to cross below its signal line – A break below 24.405 could lead to a potential target at the cluster of major moving averages in the lower 23.000s – A break back above the 25.770 highs of Thursday would indicate a probable extension of the uptrend – A decisive break above the range highs would indicate even more bullish momentum higher – A move higher would be expected to reach a conservative target at the 0.618 extrapolation of the height of the range from the breakout point higher, and a target at 28.524 |
