The key to this round of gold and silver price surge lies in the technical breakthrough.

Political

Commodity

Summary:

A strong breakthrough in the technical structure may lead to a continued upward trend in gold and silver prices in the short term.

BUY XAGUSD

EXP

TRADING

62.312

Entry Price

66.200

59.000

64.293 +2.800 +4.55%

0.0

Pips

Flat

59.000

Exit Price

62.312

Entry Price

66.200

Fundamentals

On Wednesday, both gold and silver prices surged by over 4% in a single day, instantly shifting the market from a wait-and-see approach to a bullish frenzy. On the surface, the catalysts for this round of gold and silver price increases were weaker-than-expected ADP employment data, rising expectations of a Middle East peace process leading to a sharp drop in oil prices, and cooling expectations of inflation and interest rate hikes.

However, the situation in the Middle East remains highly uncertain. The expectations of the US and Iran in the negotiations are very different, and there are many variables. The market's optimism is still accompanied by cautious sentiment. Therefore, these positive catalysts are not enough to support such an extreme single-day surge.

Ultimately, the key lies in the effective breakthrough of the technical structure. Gold and silver broke through key levels, ending months of weakness and consolidation. As the saying goes, prolonged consolidation inevitably leads to a direction; the longer the sideways consolidation, the more sufficient the capital accumulation. The technical breakthrough attracted momentum funds, turning the trend bullish, and the ensuing rally was more powerful, exceeding expectations. In the short term, this momentum and sentiment are likely to continue.

Technical aspects

The key to this round of gold and silver price surge lies in the technical breakthrough.

Looking at the 4-hour chart, XAGUSD broke out of its range and moved higher, breaking free from the consolidation range that had lasted for more than a month. After consolidating and accumulating strength, silver is expected to strengthen further.

The recommended strategy is to buy on dips. Consider going long around 62.0, with a target of around 66.5 and a stop-loss below 60.0.

Trading advice

Trading direction: Long

Entry slots: 62.0

Target bit: 66.2

Stop-loss level: 59.0

Downside support levels: 61.0/60.0

Upward resistance levels: 63.0/66.5

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