Silver & Gold, Should We Hold?

JC Parets
March 11, 2021

Bond Yields and US Dollar have been in the spotlight over the last few days. But in the meantime, let's not forget to check on our shiny friends, that are not in their most shiny phases.

What are the levels to watch out for on Silver and Gold? Let's have a look.

Silver has been the stronger one out of the two names and we've seen more resilience from Silver over the past few months. While both the metals haven't been at their shiny best off late, an outperformance in Silver bodes well for precious metals in the weeks and months ahead. It is this outperformance that prevents us from shorting Gold and being selective about the levels we observe.

Click on chart to enlarge view.

Silver has found it difficult to get past the level of 73,900 and has been moving lower ever since. An immediate level of support is in place at 62,650, as Silver continues to tread sideways.

While we are still waiting for a buy signal in this metal, we're keeping an eye on whether this support holds its ground. Until this correction is digested, we'd like to wait it out. But a beach of 58,100 is when the alarm bells will start ringing.

We are bullish above the level of 73,900, with a target near 99,500.

Since achieving our target of close to 58,800 in August 2020, the yellow metal has been correcting towards lower levels. Every interim support has been taken out as the downward movement continues to play out. The price is currently placed at a crucial area of support.

We are keeping an eye on this one as the indicator has moved into a bearish regime after a gap of four years. Although every time the indicator has gone south a quick bounce-back has been in the offing, so that might be something to track as well. The level to watch out for in the event that 44,550 gets breached, is 40,000. A minor zone of demand can be seen here and it will be interesting to see how the price reacts to these levels.

Until any further confirmation, we're still watching and observing.

Siver and Gold have had a strong move in the recent past and a correction is only natural in a long-term upward trend. When this correction starts taking out crucial levels of support, that's when the exit door opens up and we're going to keep an eye out for any development that comes our way!

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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