Gold futures broke above 1800 this week, once again moving near long-term highs. The /GC contract now finds itself at a crossroads on the eve of the long holiday weekend for traders, who now must decide whether Gold has the momentum to push upward and avoid a potentially bearish triple-top pattern. Previous rallies have stalled near the 1760 area, so this will be an important point for bulls to hold. But if Gold starts breaking to the upside, the next price level to watch will be near 1827 near the current upper level of the Linear Regression 50% Channel. However, Silver futures have yet to see the same upside pressure as gold. The two metals typically show close correlation, but Silver still remains below its previous highs near the 19 level from early June. Prices have failed to move above this resistance area four times during the past year, so a breakout could be significant. The 17.5 level to the downside is a similar point of a stubborn support, so any move beyond this range is worth watching.
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