Both Gold and Silver had a bumpy ride since the beginning of the year. The past two weeks, both metals lost their steam and broke through this year’s uptrend line.
However, I was confident that despite recent declines, both metals would rebound (of course, not because I knew about the political situation in the US in advance), because these metals had more potential as the US Dollar rally has ended since the beginning of the year.
In our previous reports, during this week and last week, we noted that traders shouldn't overreact to the broken trendline. At the same time, we noted that both metals need to prove their strength in order to renew a stronger bullish outlook.
This week, Both metals somehow proved that there is still a possibility for another rally ahead, with some signs that the broken trendline was just a trap for bears.
In the meantime, with geopolitical tensions remaining on the upside, in addition to the political situation in the US, side by side with the continuous declines in the US Dollar - the bullish outlook is here to stay.
Gold Above Its Moving Averages
Last week, Gold managed to close below its entire moving averages on the daily chart, including the 50, 100 and 200 DAY MA’s.
However, this week, Gold managed to recover well above its 200 and 100 DAY MA’s but remains stuck below its 50 DAY MA so far.
Yet, when Gold a few days ago posted the biggest one-day gain since June 2016, it was considered to be an impulsive move, which was likely to continue in the coming days/weeks ahead.
Read full report: https://www.orbex.com/blog/2017/05/metals-rebound-geopolitical-tensions-support-bullish-outlook/