Gold Price Outlook Negative, Silver Gains Likely Limited

London (Jan 22) Gold is holding the 2-month trend line support at 1278/77 on the first test as predicted but is unlikely to hold today. Below 1276 is a sell signal targeting 1274 and probably a buying opportunity at 1268/66. Try longs with stops below 1263.

The outlook is negative with strong resistance at 1280/81 but above here meets a selling opportunity at 1286/88, with stops above 1290. The next target and resistance are at 1294/95. Bulls need a break above 1299.

Silver is holding first resistance at 1530 as is likely re-targets 1523, 1518 and 1510/05.

Gains are likely to be limited but above 1535 look for a selling opportunity at 1553/55 with stops above 1560.

Investing.com