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The FxPro Analyst Team

Gold and Silver Hold Above Significant Support levels

Gold prices have plunged since the beginning of October, hitting a post Brexit low of 1241.35 on 7th October, in line with a strengthening of the dollar.

The price rebounded after testing the significant mid-term support line at 1250, as this level provides very strong support.

The current trading pattern is likely to oscillate in the range between 1250, and the short term resistance level at 1262.

The resistance level is at 1262, followed by 1270 and 1280.
The support line is at 1250, followed by 1240 and 1230.

Today we will see important US economic data, released at 12:30 GMT, Retail Sales and Core Retail Sales (MoM) for September, and PPI and Core PPI (YoY and MoM) for September.

Michigan Consumer Sentiment Index for October, to be released at 14:00 GMT. The data will likely influence the trend of gold prices.

Better-than-expected figures will weigh on gold prices and gold will likely test the support level at 1250 again.
With lower-than-expected figures, gold will likely rally and test the resistance level at 1262 again.

The Fed Chair Yellen will make a speech at 17:30 GMT today. Be aware of the wording, as it will likely influence the strength of the dollar and the trend of gold prices.

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Silver prices have plunged since the beginning of October, hitting a post Brexit low of 17.08, on 7th October, in line with a strengthening of the dollar.

The price rebounded after testing the significant mid-term support line at 17.00, as this level provides strong support.

The current trading pattern is likely to oscillate in the range between 17.00, and the short term resistance level at 18.00.

The resistance level is at 17.60, followed by 17.80 and 18.00.
The support line is at 17.40, followed by 17.00 and 16.80.

Today we will see important US economic data, released at 12:30 GMT, Retail Sales and Core Retail Sales (MoM) for September, and PPI and Core PPI (YoY and MoM) for September.

Michigan Consumer Sentiment Index for October, to be released at 14:00 GMT. The data will likely influence the trend of silver prices.

Better-than-expected figures will weigh on silver prices and gold will likely test the support level at 1250 again.
With lower-than-expected figures, gold will likely rally and test the resistance level at 1262 again.

The Fed Chair Yellen will make a speech at 17:30 GMT today. Be aware of the wording, as it will likely influence the strength of the dollar and the trend of gold prices.

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5/5(1)