- On Tuesday, the price of gold fell sharply to the level of $2,604.
- The price of silver has been under strong downward pressure since the beginning of this week.
Gold chart analysis
On Tuesday, the price of gold fell sharply to the level of $2,604. The price was under pressure in the $2650 area, after which we saw the beginning of a bearish consolidation to a new low. A quick consolidation at the new low slightly recovered the price to $2,625. During the Asian session this morning, gold loses momentum again and begins a new pullback towards the $2,610 level. We are moving back towards the weekly low area, which could produce a new lower low.
The lowest potential targets are the $2,600 and $2,595 levels. For a bullish call, we need a gold price return above $2,625 today's high price. With this we will see the formation of a new daily high as confirmation of the transition to the bullish side. After that, we need to stabilize there so we can continue our recovery. The highest potential targets are the $2630 and $2635 levels.
Silver Chart Analysis
The price of silver has been under strong downward 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 stay above the 200 EMA in the $31.60 zone, leading to the start of a bearish consolidation. After forming a new low, silver stabilized and recovered to the $30.70 level. During the Asian session this morning, the price remained under pressure and moved in the range of $30.40 to $30.70.
Failure to break above the daily opening level will strengthen the bearish momentum. After that, we will retest the weekly low. The possible lower targets are the $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 there to form a new bottom from which we will continue to grow towards the bullish side. The highest potential targets are the $31.00 and $31.20 levels.
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