Gold declined on Wednesday by 0.7% to $1,639.6; silver also decreased by 0.59% to $31.49. During April, gold decreased by 1.93% and silver by 3.07%.
The gold silver ratio declined again to 51.48. During April the ratio remained nearly flat as gold has performed very similar to silver during the month. In the chart below are the shifts in this ratio during April (up to date).
Gold prices are testing support at 1638.02, the 23.6% Fibonacci expansion, after putting in a Bearish Engulfing candlestick pattern below falling trend line resistance set from early March. A break lower exposes the 38.2% level at 1612.02. However, a Doji candlestick warns of indecision and opens the possibility of a bounce. Trend line resistance is now at 1668.21.
Silver: Prices continue to consolidate below resistance at 32.93, the former neckline of a Head and Shoulders (H&S) top carved out between late January and mid-March, and horizontal support at 31.04. A break blower exposes the first downside barrier at 29.79. The H&S setup broadly implies a measured downside target at 26.84.
