Gold and silver: gold enters a certain consolidation zone
- During this morning’s Asian trading session, the gold price moved in the $2450-$2460 range
- On Thursday, the price of silver formed a weekly high at the $28.51 level
Gold chart analysis
During this morning’s Asian trading session, the gold price moved in the $2450-$2460 range. We are now at the $2452 level and are leaning towards the $2450 support level. On the upside, we have pressure from the EMA 50 moving average, which could add to the bearish momentum. With the break below, we go to a new daily low and thus get support for continuing to the bearish side. Potential lower targets are $2445 and $2440 levels.
In the $2440 zone, gold encounters the EMA 200 and can hope for its support. For a bullish option, we need gold prices to rise above the $2460 level. Then, we need to stabilize up there. If we succeed in this, the price would be in a new position to start a bullish consolidation. Potential higher targets are the $2465 and $2470 levels.
Silver chart analysis
On Thursday, the price of silver formed a weekly high at the $28.51 level. After that, in this morning’s Asian session, we saw a pullback to the $28.10 level. The price continues to be under pressure in the EU session as well, and the chances of a continuation to the bearish side are growing. At the $28.00 level, we have the EMA 50 moving average, which could slow down the pullback. If its support does not hold, silver will continue to retreat to lower levels.
Potential lower targets are the $27.80 and $27.60 levels. The EMA 200 moving average at $27.80 provides additional major support for the silver price. For a bullish option, we need a positive consolidation above the $28.40 daily open price. This brings us back to this week’s resistance zone. This time, we can hope for a break above and the formation of a new high. Potential higher targets are the $28.60 and $28.80 levels.
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