April is set to be the key month for the medium-term and long-term trend of precious metals gold and silver, based on current technical chart activity. Both the precious metals are reportedly nearing important price levels.
It was also reported that both gold and silver retraced and it was in the last two weeks of March that they recovered to end in neutral territory.
When it came to being tested on the $1,200 level, gold held up. The precious metal is currently trading somewhere around the important $1,250 an ounce level. This is where the metal may find strong resistance based on a number of factors.
The longest term resistance trendline is around $1,350 that is 8% from current levels, and gold is trading around the middle of the bear market channel. Meanwhile, the Fibonacci retracement level of the long term bull market (at 38.2%) is also around $1,291.
The white precious metal, silver, would constitute a secular breakout, with a move above $20 an ounce.
Though the picture for precious metals is hard to plot, it is the activity in April which is expected to bring in more clarity.