The Technicals: Getting Closer to a Bottom, but Not There Yet

Technical Analysis of Gold and Silver

This analysis attempts to look at different metrics to understand the current momentum in the gold and silver markets. It is meant as an analysis on potential price direction in the very short-term (a few weeks to 1-2 months).

In Q4, the technical analysis was strongly calling for a pullback or at least a consolidation period. The price indicators were quite bearish. The call may have been early by a few weeks but was an essential step if the bull market in both metals was going to continue.

In Q1, the analysis highlighted the break of support in gold and silver of $5000 and $80 as a short-term bearish indicator with more downside risk ahead. That turned out to be another accurate call.