GOLD (XAUUSD)
Dominant bias: Bearish
Gold experienced a massive sell-off last week, which completely invalidated the recent bullish bias. The market has been very volatile since then, with short-lived victories alternating between bulls and bears. In this kind of market, a wide stop is recommended; though the most probable direction is now southward. Only a movement above the supply level at 1324.00 could discount the probability. Meanwhile, price may reach the demand level at 1293.00 as that level was tested during the massive sell-off last week.

SILVER (XAGUSD)
Dominant bias: Bearish
There is a Bearish Confirmation Pattern in this market – brought about as a result of the extreme weakness displayed last week. Gold and Silver are highly correlated (positive correlation), so any discrepancy in direction presents a profitable trading opportunity, especially when causing transitory negative correlation. Right now, continued weakness is most likely, but volatility in the market must be taken into consideration. Sellers may want to take some profit at the support level of 20.3300, for this is an area where the price may bounce upwards quite significantly.