Bullion Weekly Forecast : Gold (Yellow Metal) has shown some good strength recently as it comes off support created via a couple of lows formed during 2021. The $1685—$1690 area is looking like a good floor for now, but the bounce may be put to the test this coming week.
A test would be a good thing given that all rallies have generally failed since topping in the early part of the year. If we see mild, short-lived weakness it could indicate that indeed we are seeing a change in behavior after hitting meaningful long-term support.
There is a trend-line forming off the recent lows that is near confluence with a minor swing-high at $1737. This would be a good spot to see Yellow Metal hold for another turn higher. If we see that level break and price sink too much further we will need to consider that at the least a retest of long-term support (or worse) is in the works.
On the top-side, resistance clocks in at trend-lines from April and the March record high, along with a pair of lows around the $1790 mark.
Post-fed, Silver (White Metal) launched out of a small wedge pattern. This sent price above a trend-line from April and has it nearing an important swing-low created in May. Like gold, it would be good to see the bounce tested and hold if we are to see a larger rally develop.
As far as support levels to watch it is a little less clear in silver than it is in gold. Resistance clocks in at $20.85.
