Gold & Silver Facing Chart Resistance At $1,300 and $20.25

Kitco speaks with technical analyst Jim Wyckoff about the semi-annual testimony from Bernanke in front of Congress today and the reaction of the price of gold and the silver price.

Not a whole lot has changed since his previous speech. In my opinion it was a little more dovish. During the question-and-answer session following his well prepared text and his testimony some of the marketplace reacted a bit more hawkish.

The gold market is seeing some technical consolidation this week. Prices are well up from the recent low. There is some sideways backing and filling. You may see more of the same in the coming weeks as we are heading into the month of August when typically much of Europe is on vacation and lots of traders in the US start to take vacations.

The resistance levels in the gold market are at at $1,300 which was almost touched this week and solid technical support at $1,250. Given the Wyckoff market rating of 3.0/10 gold is still in the bearish camp.

Silver got overhead resistance at last week’s high of $20.25 and solid chart support at the July low of $18.66. With Wyckoff’s market rating 2.0/10 silver is still fully in the bearish camp.