Gold Pulls Back on Technical Selling

  • Gold bear vs bull

Gold pulled back slightly today, closing at $1256 an ounce in regular trading hours as it continued to consolidate this week on technical selling pressure. Gold began the week crossing through the $1284 support level on Tuesday and fell to $1251 an ounce before climbing back to $1261 and settling at $1255. Silver closed down slightly, maintaining its level in the $19 an ounce range as it continued its fight to remain in the $19 to $20 an ounce trading pattern that we’ve experienced in the last several weeks.

Gold made a run mid day after the release of the U.S. gross domestic numbers, showing a drop of one percent as the economy showed a bit of recent weakness in the first quarter of 2014. The three month drop was attributed to a recent bout of bad weather, which has improved in recent weeks as the weather continued to warm up. The gold price increase was short lived however, as the impressive spike was reversed quickly after it began.

The bears have taken control of the gold market this week, continuing a six week pullback in prices as the yellow metal flirts with breaking the $1250 support level. Resistance for gold is close to the $1260 level with a secondary, higher resistance level close to $1280 an ounce. Silver, meanwhile, is stubbornly holding on to the $19 an ounce level and resistance for the next leg up remains at $19.50. A hold above the $18.70 level will be a good sign that silver is ready to make a run above $19.50 and try to cross over the technically and psychologically important $20 an ounce level.

Now is the time to buy gold or silver

If you are interested in buying gold and/or silver to diversify to your investment portfolio, we encourage you to download our Free Investors Guide to Rare Coins and Precious Metals.  We put this informative guide together to provide current and potential investors with the benefits and advantages of investing in precious metals and rare coins.  It’s free and available for immediate download.

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2016-10-31T12:20:01-04:00By |Categories: Gold News, Silver News|

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President and CEO of National Coin Broker
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