Famous Analyst Wyckoff Announces Critical Levels for Gold and Silver Price
Gold and silver prices dropped slightly, albeit with a pause in the US stock market. Gold bulls need a new fundamental development to frighten the market and start short-term price rising trends. Gold futures in August are trading at $ 1,753.20 with an increase of 1.28%. July Comex silver futures prices are at $ 17,825, down $ 0.32 per ounce.
US stock indices declined. Since the cases of Covid-19 are on the rise in many US states, the risk appetite seems to be a little behind this week, and there are concerns once again that restrictions may be imposed in these states. Reports report that the second wave of pandemic outbreak in China is rapidly under control, but the spread of the virus is observed in other countries.
Another analyst quoted by Wyckoff says: “Covid-19 and Fed’s actions affect the herd mentality in financial markets where rational risk and reward calculations are no longer present. The first sign of the problem is that traders are fleeing to the safe harbor and traders are trying to get across with this incentive packages. Such an environment will increase volatility in the near future. The problem that the Fed and other central banks have created in the past few months is that retail investors are bidding on some poorly performing companies because they believe that the current policies will keep them alive.
Major foreign markets are seeing an increase in the US dollar index. Meanwhile, Nymex crude oil prices have also risen and are trading at $ 39.61 a barrel. The US Treasury Department’s 10-year productivity rating is currently around 0.7%.
“Golden bulls have technical advantage in the short term”
According to Wyckoff, technically, the August gold futures bulls have the technical advantage in the near term, as the trade is in a higher fluctuating and horizontal state. In the longer term, with such action, energy may be stored for another move in prices in the coming weeks or months. The next bullish price target of gold bulls is to trade close to the technical resistance level above $ 1.761.00. The next short-term negative goal of the bears is to fall below the technical support of 1,700.00. Initial resistance is seen at $ 1,750 after $ 1,743. Initial support is taken at $ 1,706, the week’s low, after $ 1,717.30.
According to Wykcoff, July futures prices caught a downward trend in the daily chart. Silver bulls generally have short-term technical advantages. However, recently this advantage seems to be a little faded. Silver bulls’ next negative price target is to close prices above solid technical resistance to $ 19.00 an ounce. The next disadvantageous goal for bears is to close prices below solid support at $ 16.50. The first resistance is seen at $ 17.92 and then at $ 18.00. The next support is seen at $ 17.40 and then at $ 17.25.