Gold & silver edge higher leading into the US open

October 8, 2020

Price action in gold and silver has been subdued leading into the US open. Gold trades 0.26% higher but seems to be stuck in a narrow range between $1900 and $1972 per ounce. The red trendline on the chart comes from the higher timeframe and if there is a break of the technical line it could be a bullish sign. Of course, above that level, the $2K psychological level lies in wait. $1916.84 per ounce is the previous consolidation low and this could be a real sticky point for the bulls. 

It seems the market is stuck in limbo leading to the US election and investors and traders are looking for a catalyst for volatility. Later in the session, the market will get the latest weekly initial jobless claims data and this could inspire some movement. Stocks in the EU have positive, both the FTSE 100 (0.30%) and DAX (0.52%) trade in positive territory and as we know both gold and stocks have been moving together. 

Silver has been trading well. The precious metal has pushed 0.81% higher and is looking to test $24 per ounce. If the price rejects the figure the next support on the downside holds at $23.25 per ounce. On the topside, the bulls will be looking to target the previous wave high at $24.51 per ounce and if that level breaks the next resistance is much higher up at $25.80 per ounce. 

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