GOLD
The metals are having difficulties in recovering from the sharp declines that occurred two weeks ago. When the gold traded around $1800, Bernanke said that this level reflected a bubble in the gold's price, and his speech caused extreme selling of both gold and silver. The gold crashed to the level of $1660, in which the sort positions players started to cover their positions and the price corrected to $1720. However, the heavy selling resumed around this level and the gold is again close to the support at $1660. The bearish pattern of the "Inverted Cup & Handle" appeared on the gold's daily chart and if the metal breaks-down the support, the price might slide to $1600. Nevertheless, the current support looks strong, so we might see the gold tries rising upwards to $1700 again.
Silver
Bernanke's point of view about the gold prices had a strong influence on the silver as well and this precious metal fell from $37.5 to $32.5, which is 13% in less than two weeks. The metal corrected to $34 but failed in breaking through, as it did few times during the previous month. The silver is building the "Head & Shoulders" pattern on the daily chart, above the support at $32.5, as a strong break-down of this support might pull the price down to $30.0-$30.5. However, yesterday's candlestick ended with a lower tail, which means that there is a support in the current levels, and the silver might try to retry breaking $34 again.
The metals are having difficulties in recovering from the sharp declines that occurred two weeks ago. When the gold traded around $1800, Bernanke said that this level reflected a bubble in the gold's price, and his speech caused extreme selling of both gold and silver. The gold crashed to the level of $1660, in which the sort positions players started to cover their positions and the price corrected to $1720. However, the heavy selling resumed around this level and the gold is again close to the support at $1660. The bearish pattern of the "Inverted Cup & Handle" appeared on the gold's daily chart and if the metal breaks-down the support, the price might slide to $1600. Nevertheless, the current support looks strong, so we might see the gold tries rising upwards to $1700 again.
Silver
Bernanke's point of view about the gold prices had a strong influence on the silver as well and this precious metal fell from $37.5 to $32.5, which is 13% in less than two weeks. The metal corrected to $34 but failed in breaking through, as it did few times during the previous month. The silver is building the "Head & Shoulders" pattern on the daily chart, above the support at $32.5, as a strong break-down of this support might pull the price down to $30.0-$30.5. However, yesterday's candlestick ended with a lower tail, which means that there is a support in the current levels, and the silver might try to retry breaking $34 again.