Gold and Silver: Bearish Trend for the Fifth Day in a Row.
- The price of gold continues its bearish trend for the fifth day in a row.
- The price of silver continues its retreat and fell below the $19.50 level this morning.
- A marked decline in the price of gold during the month is likely to generate additional buying interest.
Gold chart analysis
The price of gold continues its bearish trend for the fifth day in a row. We are currently testing the $1750 support level. The moving averages are all on the bearish side, pushing the price of gold. A strong dollar is not allowing the price of gold to recover. We could have some support here because we have no major economic news during today’s American session. For a bullish option, we need a new positive consolidation and price growth up to the $1760 level. After that, we get additional support in the MA20 and MA50 moving averages. Potential higher targets are $1770 and $1780 levels. And at the $1780 level, our additional resistance is the MA200 moving average. We need a negative consolidation and a price drop below the $1750 level for a bearish option. Potential lower targets are $1740 and $1730 levels.
Silver chart analysis
The price of silver continues its retreat and fell below the $19.50 level this morning. The bearish trend continued during the day to $19.12, where we have some support for now. Moving averages have been on the bearish side since the beginning of the week. A strong increase affects the prices of all goods that are presented in dollars. Based on the current picture, we can expect a continuation of the price pullback, and the target is the $19.00 level. For a bullish option, we need a new positive consolidation and price recovery to the $19.50 level. If we could manage to climb above, then we would get support in the MA20 and MA50 moving averages. After that, the price of silver could try to continue its recovery. Potential higher targets are $19.75 and $20.00 levels.
A marked decline in the price of gold during the month is likely to generate additional buying interest. Furthermore, stocks need to be replenished after months of reduced imports. China is currently the biggest buyer of gold. Prospects for further tightening monetary policy and a more stable US dollar, at least until the end of the year, will continue to influence the gold price trend.