The gold price bounces off a key level leading into the US session

London (Oct 13)  Gold has bounced off the red support level at $1913.13 per ounce. This area was a formidable support area previously and could be a decent support zone leading into the US session this afternoon. The level the bulls need to keep an eye on the upside is the previous wave high at $1933.28 and if this breaks the uptrend could be back on. Beyond that, if the $2K psychological resistance is taken out then that could be a signal that the market is ready to push back toward the all-time highs.

Silver has also broken out of a decent zone. The price has pushed above the chart pattern in the 4-hour chart below. The next level to watch out for looks like the red resistance line at $26.02 per ounce. The top of the pattern seems to be acting as a good support zone for now but a break back below $24.50 could indicate the bears are back in charge.

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