Gold and Silver Rebound Focus on the Breakout of Resistance Level to Resume the Up Trend

Gold nuggets
The precious metals rebound from August 12. Gold bounced 6.5% from the low of $1,863, while silver rebounded 17.2% from the low of $23.44. The weakness of the U.S. dollar would help to lift the precious metal prices. Yesterday, the ICE U.S. Dollar Index slipped 0.1% on day to 93.24, down for a second straight session.

Currently, investors would weigh on the trend of U.S. dollars and geopolitical risk between the U.S. and China. Besides, the Federal Reserve will issue the minutes on Wednesday, which may affect the bond yield and the U.S. dollars.

Gold (Short Term): Cautious

Source: GAIN Capital, TradingView.

On a daily chart, gold posted a rebound from $1,863 and broke above the 20-day moving average. Currently, the prices are expected to challenge the resistance level at $2,015.

Besides, the relative strength index has landed on its neutrality level at 50 and is turning upward.

Therefore, investors should focus on the key resistance level at $2,015 and stand aside first. A close above $2,015 would turn the technical outlook to positive and trigger an advance to the resistance levels at $2,075 and $2,140.

On the other hand, failing to stand above $2,015 would continue the range trading and may return to the support level at $1,910.

Silver (Short Term): Focus on the level at $27.85

Source: GAIN Capital, TradingView

From a technical point of view, silver posts a sharp rebound and challenges the resistance level at $27.85 on a daily chart.

Currently, the prices returned the level above the 20-day moving average, while the relative strength index failed to break below the neutrality level at 50.

In this case, the investors should stay neutral and watch the close price of silver. If silver is able to stand above the resistance level at $27.85, the prices could consider another up move to the next resistance levels at $30.0 and $31.50.

On the other hand, staying below the $27.85 would continue the choppy trading and may return to the support level at $24.75.
Related tags: Gold Silver

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