Gold (GOLD) and silver prices were neutral last month. During the first two weeks of March, gold and silver retraced only to recover in the last two weeks of the month. Right now, both gold and silver are trading at the same levels as a month ago.
In February and March, particularly gold went through a very important series of tests. Gold prices stood strong last month when the $1200 area was tested. That is when we came out and adviced to closely what gold’s major bear market test. The price of gold was only 8 pct away from a bull market.
InvestingHaven believes that April 2017 will be an important month for precious metals. Why? Because gold and silver prices are near important price levels. We believe there is a very high probability that a direction will be chosen in the coming weeks. Given the chart setup, the trend in the coming weeks could be telling for the medium term, even long term.
In other words, readers will soon find out where our gold price forecast for 2017 and silver price forecast for 2017 will be accurate (or not).
Right now, gold is trading again around the important $1250 area. There is a lot of resistance in this area for several reasons:
- First, the current gold price is somewhere in the middle of the bear market channel.
- Second, the longest term resistance trendline kicks in right above $1350, which is 8 pct from current price levels.
- Third, although of secondary importance, the 38.2% Fibonacci retracement level of the long term bull market is near, specifically at $1291.
What about silver?
Silver’s 2016 rally stalled at point 1 (below chart), exactly at an intercept of the 2008 highs and 2 other secular trendlines (black and green on the chart). April 2017 will be an important month for silver as a break above $20 will be a secular breakout. However, gold, typically the leader when secular trends change, looks less impressive, which makes the picture in precious metals hard to read at this point and suggests that April will bring clarity.
