Gold and Silver

SILVER
Again, failure to remain above the 18.30 level has forced the metal to try to build a solid base above one of the correctional levels and today it seems like the 61.8% level at 17.48 will be the obstacle for the downside correction. Building a solid base above this level will allow the metal to incline once again above 18.30. Other than that, the sideways pattern will be visible on the medium term and head towards the key support below 17.00.

The trading range is seen among 17.02 support levels and 18.44 resistance levels.

The general trend is to the upside as far as 14.50 remains intact with target at 20.90

GOLD
Failure to build a solid base above the resistance level for the correctional movements mentioned yesterday resulted in a strong fall to break the key support of the ascending channel. The metal is now facing a support level at 938.10 represented by the 38.2% correctional level but due to the bearish trend, this level could be weak. However, the upside trend still exists as far as the 61.8% correctional level at 907.30 remains intact which we don't believe the metal will reach to easily. The extended levels between 938 and 922.70 will provide demand on the metal as it is the strong correctional levels alongside being overbought. Reversing to the upside will take some time and from here we expect the neutral trend with tendency to the downside to remain for today.

The trading range is seen among 922.70 support levels and 966.85 resistance levels.

The general trend is to the upside as far as 730.00 remains intact with targets at 983.00 and 1016.00