Gold and silver technicals leading into the US session

Gold and silver technicals leading into the US session

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Gold is still moving sideways into the US session. The histogram on the right-hand side of the chart shows the amount of volume that has been traded at what price and now a large peak is being formed near $1905.9 per ounce. As suggested yesterday the price is now finding resistance at the bottom of the flag type structure. There was not a significant test of the purple resistance line but if the bulls are to take control of this market it would need to be broken. On the downside, the next support remains at the blue line near $1885 per ounce. 

Silver is also struggling at the area where most contracts have been traded ($24.42). There has been a decent rejection of the flag type pattern and it seems the price could move lower from here. On the topside, if the wave high of $24.76 per ounce breaks it would be a bullish sign so keep an eye on that in the afternoon. If the bears are to keep hold the low at $24.14 is key and a break of this area could see the price accelerate to the red support level at $23.70.

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