Gold (XAU/USD) and Silver (XAG/USD) prices have edged slightly lower despite rising concerns of the Delta variant across global markets.

Although the demand for safe-haven assets remains supported by rising inflation concerns, positive European PMI data and upbeat earnings of US tech stocks have hindered the ability for commodities to regain possession of the imminent trend.

As risk-sentiment seeks further clarity, the FOMC meeting minutes and additional event risk may further assist in the catalyzation of price action.

Gold (XAU/USD) Price Action

Gold (XAU/USD) prices are currently trading at a critical level of support, threatening a break below $1800, a level that has proven to hold strong on numerous occasions.

With the formation of a Golden cross (on 28 June) supporting the correction from June’s slide, failure to drive prices above $1819 could provide bears the opportunity to test further downside potential.

Gold (XAU/USD) Daily Chart

(Click on image to enlarge)

Chart prepared by Tammy Da Costa using TradingView

Silver (XAG/USD) Price Action

As bulls and bears continue to battle it out ahead of next week’s major event risk, Silver is edging closer towards critical support at $25. For now, price action remains below both the 20 and 50 Day Moving Average (MA), while the Commodity Channel Index (CCI) remains in oversold territory.

Silver (XAG/USD) Daily Chart

(Click on image to enlarge)

Chart prepared by Tammy Da Costa using TradingView

For the imminent move, the 61.8% Fibonacci levels of two major moves continue to provide support and resistance at the respective levels of $24.86 and $25.68.

Should bulls wish to regain dominance over the systemic, prominent trend, a break above the 50% retracement of $25.86 may be required.

Likewise, for the bearish narrative to persist, bears will be required to drive prices below $24.85.