Gold (XAU/USD) and Silver (XAG/USD) Continue to Rally as Buyers Take Charge

Gold (XAU/USD) and Silver (XAG/USD) Analysis and Charts

• Gold breaks higher, resistance yields.
• Silver rallies by 2% and outperforms gold.

DailyFX Economic Calendar

Most Read: Gold (XAU/USD) Price Setting Up for a Re-Test of Multi-Month Highs

The US dollar is moving back to lows last seen in late August and this is giving the precious metal sector another boost higher. A weaker dollar is seen as a positive for both gold and silver, with demand for the precious metals increasing as gold becomes cheaper in dollar-denominated terms. The US dollar is testing support off its longer-dated simple moving average ( black line) and if this breaks, further losses look likely.

US Dollar Index Daily Chart

Retail trader data shows 57.43% of traders are net-long Gold with the ratio of traders long to short at 1.35 to 1.The number of traders net-long is 3.18% higher than yesterday and 1.18% lower than last week, while the number of traders net-short is 5.00% lower than yesterday and 18.10% higher from last week.

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Gold is testing a prior level of resistance at $2,009/oz. and looks set to push higher. A prior level of note at $1,987/oz. is acting as first-line support, with the 20-day simple moving average, currently at $1,976/oz. the next level of interest. A close and open above $2,009/oz. should open the way to $2,032/oz. and $2,049/oz.

Gold Daily Price Chart – November 27, 2023

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Silver is also moving higher again and is outperforming gold over the last two weeks. Silver has rallied nearly 20% over the last two months and is currently trading at its highest level since late August. The technical setup remains positive and a break above $25.26 will bring $26.13 and $26.21 into play.

Silver Daily Price Chart – November 27, 2023

Charts via TradingView

What is your view on Gold – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.