Gold and Silver: New Weekly Lows and Potential Targets
- On Tuesday, the price of gold retreated sharply to the $2,604 level
- The price of silver has been under heavy bearish pressure since the beginning of this week
Gold chart analysis
On Tuesday, the price of gold retreated sharply to the $2,604 level. The price was under pressure in the $2650 zone, after which we saw the initiation of bearish consolidation to a new low. A quick consolidation at the new low slightly recovered the price to $2625. During this morning’s Asian trading session, gold loses momentum again and begins a new retreat to the $2610 level. We are again moving into the zone of the weekly low, which could produce a new lower low.
Potential lower targets are $2600 and $2595 levels. For a bullish option, we need a return of the gold price above $2625 today’s high price. With this, we will see the formation of a new daily high as a confirmation of the transition to the bullish side. After that, we need to stabilize there in order to continue our recovery. Potential higher targets are $2630 and $2635 levels.
Silver chart analysis
The price of silver has been under heavy bearish pressure since the beginning of this week. On Tuesday, we saw a drop to the $30.10 level. The price did not have the strength to sustain above the 200 EMA in the $31.60 zone, which led to the initiation of a bearish consolidation. After forming a new low, silver stabilized and recovered to the $30.70 level. During this morning’s Asian trading session, the price remained under pressure and moved in the $30.40-$30.70 range.
The inability to move above the daily open level will strengthen the bearish momentum. After that, we will retest the weekly low. Potential lower targets are $30.20 and $30.00 levels. For a bullish option, we need a positive consolidation and a jump to the $30.80 level. Then, we need to hold on there in order to form a new bottom from which we will continue to grow to the bullish side. Potential higher targets are $31.00 and $31.20 levels.
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