#Gold(#XAUUSD) & #Silver Forecast: 12 JUNE 2024

Gold Forecast: Continues to See Support in the Same Area Ahead of FOMC

• You can see that the gold market initially fell during the trading session, but it does seem to be catching its support a little bit as the Americans step on board.
• And it'll be interesting to see how this plays out, mainly due to the fact that it had plunged so drastically before due to the idea that the Federal Reserve may have to stay relatively tight.

However, it also looks like we have a scenario where gold is trying to do everything it can to perhaps find its footing, and if it does, that could be an excellent entry. Keep in mind that we have the FOMC meeting during the session on Wednesday. So that has a certain amount of influence as well. So do be cognizant of this.

Look for Value

With that being said, I think you look at this through the prism of a market that offers value, but you don't want to get too big ahead of the FOMC meeting because quite frankly, you could get a nasty surprise and you never really know what the market is going to do in reaction to, for example, the press conference.

So ultimately this is a situation where I'm a buyer. But if we break down below $2,280, I might be inclined to simply wait for even better pricing. And I do think that's possible. So, with this being the case, the market is likely to continue to see a lot of volatility, but ultimately, we'll try to rally and go looking towards the $2,400 level.

One thing that captures my attention is the fact that the market sold off so drastically last Friday yet has just sat at support. This is generally a good sign and suggest that perhaps the market is much more resilient than a lot of people believe. If that’s going to be the case, I think it’s probably only a matter of time before we rallied. Even if we do not, then the market should offer value at an even lower level, which becomes even more interesting.

Geopolitical issues, central banks around the world cutting rates, and of course a general uneasiness should continue to make gold attractive for most buyers. Beyond that, central banks continue to be net buyers of gold, so that also means that there’s at least one huge buyer in the market at anytime.

Silver Forecast: Plunges into Support Region (Signal & Video)

• Silver fell rather hard during the early hours on Tuesday. But really at this point in time, we have seen buyers jump in a couple of different times during the day, so it will be interesting to see if this holds.
• A lot of what traders are paying close attention to is the FOMC meeting on Wednesday. So perhaps this is the market trying to get out of the way of anything that Jerome Powell says.

I do think that there are supportive areas underneath that people will be paying close attention to, which of course starts with the $29 level. But I think underneath there you have the 50 day EMA that is important, and then the $28.50 level that has shown itself to be important multiple times in the past. The reality is we will get a lot of our answers after the FOMC meeting, and therefore, I think the next 24 hours are probably a bit erratic at best. However, if we were to turn around and recapture the $30 level, it would be a huge coup for the buyers and it could really send this market much higher.

We Are Still in an Uptrend

We are still in an uptrend, despite the fact that it's been brutal for the last couple of days, but we certainly are starting to ask some serious questions about silver overall. Keep in mind that silver is an industrial metal as well as a precious metal, so it does have a little bit of a different attitude in general than gold, so you can't really extrapolate one to the other anymore.

That being said, when precious metals sell off, silver gets absolutely crushed. In fact, it is much more volatile and much more dangerous than gold. And that's exactly why a futures contract has much more margin for silver than it does gold. So, you should extrapolate that into your CFD trading, recognizing that your position sizing needs to be very reasonable. We are approaching a point of inflection, and I think a lot of longer term trades are about to kick off. It's our job to watch and follow.

• Potential signal: IF we are above $28.50 after the FOMC press conference on Wednesday, I am a buyer of silver, with a $1 stop loss, and will be aiming for $32.50 above.

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