Gold could slip to $1308, Silver buying opportunity at $20.87

Investors were looking ahead to testimony by Federal Reserve Chair Janet Yellen on Thursday for insight as to whether or not the U.S. central bank will maintain the current pace of reductions to its stimulus program.

NEW YORK (Commodity Online): 

Mixed trend is seen in US gold futures in Asian trading hours after witnessing a fall on Wednesday night as US Fed Reserve is likely to continue with its tapering measures. US Gold futures for April delivery rose to $1331.3 before falling to $1329 an ounce.

According to TFF Market Analysis based on XAU/USD:"The correction we have been anticipating and hoping for over the past few sessions is underway. Silver had been underperforming recently and GDX and its junior have both been sluggish after strong January and February rebounds. As long as the momentum continues tomorrow Silver is fast approaching our next recommended buy order at $20.87. The action today for GDX and GDXJ suggests this should happen."

Gold has failed to rise to $1355 resistance levels and RSI has fallen from 71 levels to 66 levels on daily charts signifying selling at higher levels. MACD remains in positive territory raising hopes of prices moving up to $360 levels although a break of support level downwards can push prices to below $1300, 

Oil inventories were up this week but at a much lower level than forecast. A good day for crude as Gold and Silver start an inevitable downward correction. This could well continue over the coming few sessions but we believe the best money is to be made by accumulating Silver during any pullback and we therefore do not see any useful opportunities to put any money to work in crude at this time in either direction.