Gold remains stable in the $2,420 area

• During the Asian session this morning, the price of gold again found support at the $2405 level.
• On Monday, we saw the price of silver fall to $27.29, a new July low.

Gold Chart Analysis

During the Asian session this morning, the gold price again found support at the $2405 level. After this, we saw bullish impulses that rose to the $2425 level. The price is now holding around the $2420 level, and all indications are that we will see a new bullish momentum above a new weekly high. Possible upper targets are the $2430 and $2440 levels. The high for gold last week was $2432.

For a bearish option, we need a negative consolidation and a pullback to the level of $2410. There, we will test the daily opening price. By dropping to a new low, we will confirm the transition to the bearish side and increase the pressure on the gold price. After that, we expect to test the level of $2400, where the EMA 200 moving average awaits us. Possible lower targets are the levels of $2390 and $2380.

Silver Chart Analysis

On Monday, we saw the silver price drop to $27.29, a new July low. After that, the price started a bullish consolidation that continues today. Yesterday, we saw a move above the $28.00 level, where we received support from the EMA 50 moving average. In the continuation, silver gained new momentum and rose to the $28.75 level today. In this area, we are seeing an attempt to hold there and get support from the EMA 200 moving average.

With its support, we expect further bullish consolidation and the conquest of higher levels. The higher potential targets are the levels of $28.80 and $29.00. For a bearish option, we need a pullback of the silver price to the level of $28.40. There, we will test the daily opening price. With the momentum below, we move to the bearish side, which will negatively affect the price movement. The lower potential targets are the levels of $28.20 and $28.00.