Gold/silver market update for November 11-15: Both gold and silver have struggled to maintain key support levels this week. For gold, that key level is now $1280. Strength in the U.S. dollar following a large interest rate cut in the Eurozone is putting pressure on both metals. According the Dan Norcini’s analysis, if gold closes the month of November below $1280, the “resolve of the bulls” will be put to the test. $1280 is considered significant because its the 38.2% Fibonacci Retracement level of the entire rally from 2001-2011. The next support level will be June’s low of $1180. If it fails to maintain that level, the next critical target will be 50% Fibonacci Retracement level. If it were to hit this level (somewhere around $1000), this will attract a large number of long-term buyers. Like gold, silver must rally above the $21 support level in order to maintain its current levels. If it fails to do so, we could see a test of the $19.50 support level.
November 13: Gold and Silver End Mixed
November 14, 2013