Gold and Silver: Gold again at $1820 in December
- Yesterday, the price of gold was above the $1,820 level for the second time this month.
- The price of silver rose to the $24.30 level yesterday, forming a new eight-month high.
Gold chart analysis
Yesterday, the price of gold was above the $1,820 level for the second time this month. We did not stay there for long, and a pullback to the $1810 level followed. The price of gold manages to consolidate again and stay above the $1810 level. For a bullish option, we need a positive consolidation that would take us back to $1820. Then we need to see a breakout above and try to stay up there.
With the next bullish impulse, we would see the gold price rise. Potential higher targets are the $1830 and $1840 levels. We need a negative consolidation and a drop below the $1810 support level for a bearish option. After that, we would probably test the $1800 level. And if we fail to stay above that level, further withdrawal of the gold price would follow. Potential lower targets are $1790 and $1780 levels.
Silver chart analysis
The price of silver rose to the $24.30 level yesterday, forming a new eight-month high. During the Asian trading session, the silver price retreated and fell below the $24.00 level. We are now very close to the $23.80 level. We need a continuation of the negative consolidation and a drop below the current support level for a bearish option. After that, we would see a continuation of the pullback until some subsequent support.
Potential lower targets are the $23.60 and $23.40 levels. We need a positive consolidation and a return to the zone above the $24.00 level for a bullish option. After that, we would have a chance to revisit the previous high and make a potential break above. Potential higher targets are the $24.40 and $24.60 levels.
