- Silver is outperforming Gold, so traders should be more confident of being long of Silver than of Gold.
- The best new trade opportunities which might set up today will be a long trade in Silver above the $28.80 area or in Gold from support at either $2355 or $2336.
- Stock markets are mostly bullish, which is probably good news for further rises in Gold and Silver.
The price chart below Gold is well established within a long-term bullish trend. Bulls still need caution as the price is not trading in blue sky and may still hit resistance. However, we have continued to see bullish price action over recent days, and the price is approaching and not far from the recent significant swing high at $2378.
A few hours ago, the price seems to have based off the support level at $2355.06. The price looks quite likely to rise higher and it could well reach or exceed $2378 today.
There will be a release of highly important US CPI data later today which will likely cause market volatility. If the CPI number is weak for the US Dollar, we can expect Gold to rise higher, and vice versa.
The price chart below shows that Silver is well established within a long-term bullish trend. Recent hours have seen the price continue to rise bullishly and get very close to the recent swing high. It is notable that the price action here in Silver looks more bullish than what is happening in Gold, suggesting that a long trade today in Gold may work out better than one in Silver.
A problem for bulls is that we are starting to see signs that the bullish momentum is fading over the short term, as the price gets nearer to the $28.80 area.
A long trade here in Silver could be a great idea if we get a breakout beyond $28.80 with strong short-term momentum. This will probably not happen until after the US CPI data release.
Traders who prefer to buy at bounces on support after dips will likely struggle here because the nearest support level is quite a way lower, at $28.02.
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