This article provides an update on gold and silver, based on the Pitchfork technique, which is one of the chart analysis methodologies. Courtesy: Pitchfork Playground.
Gold was looking good until last week Wednesday, October 28th. It must be a coincidence that the COMEX futures gold price always drops significantly on the day of an FOMC meeting / announcement.
Right now, gold sits on its 50 day moving average (DMA). If support fails, our downside target becomes $1125 at the lower median line of the blue modified-Schiff fork. The lower median line of the red modified-Schiff fork is around $1050.
Silver is looking very similar to Gold. The price of silver was going higher, and then dropped sharply from its overhead resistance level. If the 50 DMA doesn’t hold, price will be targeting the lower median line of the blue Andrews fork around $15.