XAU/USD
Gold bounced back above 4300/4310 to hit the next target of 4318/22, but reversed from 4329.
I thought we could resume the bull trend but that clearly is not the case at this stage.
The failure to hold above 4290 triggered further losses as predicted to my targets of 4284/82, 4273/70 & 4250/45.
We broke support at 4245/40 to hit 4165 over night.
I see only 1 level of support worth noting today at 4170/4160, but it’s only minor and I think Longs could be risky in this 2 month bear trend.
If you want to take the risk then place a stop below 4150.
A break lower (if we hold below 4160/4170) can target 4130/20 & 4100/4090.
from recent price action I would not be surprised to eventually see losses as far as 4060/50 & even a retest of the June low at 4023 is not out of the question next week.
If we do manage to hold minor support at 4160/4150, look for a recovery towards 4200/4210.
Gains are likely to be limited but a break above 4220 could target 4240/4245.
XAG/USD
Silver made a high for the day exactly at the 6980/7000.
We collapsed steadily & the move below 6920/6900 triggered a sell signal targeting 6820/6800 & support at 6790/6760 but longs were stopped below 6720.
We have now fallen as far as 6423 as I write over night. I see no reason for the market to reverse so further losses look likely. I think we can target 6350/40 & 6295/6285.
Even a retest of important support 6150/6100 cannot be ruled out.
Just be aware that a break below here (& especially a weekly close below here tonight) could target 5800/5750 next week.
Gains are likely to be limited with resistance at 6510/6530 & shorts need stops above 6575.
An unexpected break higher however meets stronger resistance at 6630/6670.
