Gold established new highs yesterday and tries to reverse its tendency. Everything indicates on this scenario. The main event for today is the US Labor Market data which is to be released right before the American session. Silver had already created all prerequisites for the reverse as it has broken through the trend line. We think that Gold is likely to follow this scenario as well.
There is the downtrend on the Weekly chart as the price is below the MA55 balance line. There was no correction growth last week and we think that XAU/USD is going to growth in the nearest future after a significant decline.
There is no trend on the Hourly chart as the MA-channel is neutral and the price is close to the MA55 balance line. We give no recommendations as there is the important US Labor Market data. It is better to open positions after the release of the US Non-Farm Employment data.
Silver reversed its tendency already as it has broken through the trend line and continued to decline. There was an opportunity to open short trades from the MA13 during the Asian session and you could even take some profit or protect your trades. However, it is better to wait for the price to move back towards the MA55 balance line or the broken through trendline in order to open positions from there. We advise today to pay particular attention to the US Labor Market data and to take any decisions after the event.
There is no trend on the Weekly chart as the price is close to the MA55 balance line. There was no correction growth last week. We think XAG/USD is going to do an upside correction in the nearest future as it has previously declined significantly.
There is the uptrend on the Hourly chart as the MA-channel goes upwards and the price is above the MA55 balance line. We advise to open long trades from the MA13. Place stop loss below the trendline.