Watch upside for Gold after recent run up: TD Securities

Metal Recycling News  |  2012-07-27 02:10:34   |   By Paul Ploumis

Gold and silver broke through resistance at $1,613 an ounce and $27.53 an ounce, respectively, after comments by European Central Bank President Mario Draghi saying the central bank will do whatever is necessary to save the single European currency.

LONDON (Scrap Monster): Gold and silver broke through resistance at $1,613 an ounce and $27.53 an ounce, respectively, after comments by European Central Bank President Mario Draghi saying the central bank will do whatever is necessary to save the single European currency.

While it’s positive for bulls to see the precious metals move above resistance levels, TD Securities said traders need to be cautious.

“Although the markets have broken through those trendlines it is never comforting when they are headline driven. It will be critical for gold and silver to hold above those levels now,” they added.

“They can’t just run higher without eating their breakfast! So be cautious of a correction if they become a bit weary at these levels,” they concluded.

TDS is the global wholesale banking arm of Toronto-Dominion Bank Financial Group.

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