Gold Price In May 2017

Both gold and silver moved only a little higher and the volume that accompanied these

moves was low. Moreover, gold and silver didn’t reach any substantial support level that could generate an upswing. The RSI indicator in gold moved to 30, but that’s not the level from which gold started its rallies recently – the RSI moved even lower before that, reaching the red horizontal line.

All in all, it seems that metals have further to fall before a bounce becomes likely. To be clear, the medium-term trend remains down and is likely to remain down, but the markets usually don’t move up or down in a straight line and if we get enough signs that a turnaround is in the cards, we’ll temporarily change our short-term outlook.

The levels that could stop the decline for a while are: the 2016 bottom ($15.70 - $15.80) in the case of silver and the March 2017 bottom in case of gold.

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