Gold and Silver at new multi-month levels
- During the Asian trading session, the price of gold climbed to a five-month high at the $1810 level.
- This morning’s price of silver formed its eight-month high at the $23.50 level.
Gold chart analysis
During the Asian trading session, the price of gold climbed to a five-month high at the $1810 level. The price of gold stopped there, and we see a pullback below the $1800 level. We are now looking at $1790 as a potential support level. A price break below could lower the price to the previous support at the $1780 level. If gold prices fail to hold even there, we would probably see a further price pullback to some next lower support. Potential lower targets are $1770 and $1760 levels.
For a bullish option, we need a positive consolidation and a return above the $1800 level. Then we would have a new chance to test the previous high and climb above. If we were to succeed, we also need to maintain our position above. With a new impulse, we are starting to continue the growth of the price of gold. Potential higher targets are the $1820 and $1830 levels.
Silver chart analysis
This morning’s price of silver formed its eight-month high at the $23.50 level. After that, we see the bullish impulse stopping and the price of silver retreating to the $23.00 level. Now we are trying to get support and go into the next bullish impulse. We need a new positive consolidation and a return to this morning’s high. Then we have to stay up there in order to try to move above.
Potential higher targets are the $23.60 and $23.80 levels. For a bearish option, we need a continuation of this minor negative consolidation and a price pullback to the $22.60 level. In the zone around $22.40, we would test the previous low. A break below would extend the bearish option. Potential lower targets are $22.40, $22.20, and $22.00.