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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