Gold and silver broke through upward and it is expected to continue

Gold fell down in the early last week and started the high adjustment. It turned to choppy oscillation in the partial narrow range. Gold finally broke through upward and hit a new rebound record.

On Monday, when the partial upward momentum was consumed, gold retreated sharply from the rebound high level1830 USD to1776.57. The continuity of rebound was tested. However, gold closed with a huge bullish candle on Tuesday which completely covered the previous decline, hitting a new rebound record of 1,840. Gold started the high adjustment. On Wednesday, the market volatility significantly narrowed and it turned to narrow range choppy consolidation. The volatility was still more than twenty dollar. Following the pattern in the previous day, gold on Thursday down tested 1814 again and it was steady. Due to the technical breakthrough and risk aversion sentiment, gold continued the rebound momentum, hitting the highest level 1,884.80. It closed at a highest level, with a large bullish candle.

After the sudden decline at 1911.86, being affected by the economic situation and the buying and selling orders at low level, gold continued to rise. Now it is gradually approaching the previous high level and the strong oscillation maintained.

Observed from a technical trend, gold was supported by the daily MA system. There are still some buying orders due to the risk aversion and hedging need. The rebound pattern continued, but the previous high record of 1911.86, a momentum conversion, is regarded as a strong resistance. The upward breakthrough is not confirmed.

It is expected the possibility of testing the historical high price is still high. The down support is at 1,824.67. If the price fell below this point, the rebound will end in short-term. Before breaking the historical high record, the wide range oscillation is at 1911.86 -1703.47. If it was broken though before closing, the potential target is 1,940.