Gold and Silver: Gold has started to recover above 1875$
- During the Asian trading session, gold prices continue with a slight recovery.
- The price of silver managed to stay above the $22.00 level yesterday.
Gold chart analysis
During the Asian trading session, gold prices continue with a slight recovery. Today’s high was at the $1886 level. We are currently seeing a pullback to the $1880 level as part of this week’s consolidation. The price could now find support at $1875 and initiate a new bullish impulse with a target at the $1890 level. With that, we would form a new weekly high, which could bring the price of gold back above the $1,900 level by the end of the week.
We need a negative consolidation and a price pullback below the $1870 level for a bearish option. After that, we return to the $1860 support zone. A break below would mean that we will see a continued weakening of the price of gold. Potential lower targets are the $1850 and $1840 levels.
Silver chart analysis
The price of silver managed to stay above the $22.00 level yesterday. During the Asian trading session, silver initiated a recovery and climbed to the $22.55 level. We currently have minor resistance at that level, but we could expect to see a breakout above and growth above the $22.60 level. Such a move could mean that the price of silver has enough strength to climb even higher.
Potential higher targets are the $22.80 and $23.00 levels. We need a negative consolidation and a drop to the $22.20 level for a bearish option. This would bring us significantly closer to the $22.00 support level again. A breakout of the silver price below would form a new lower low and thus strengthen the bearish option. Potential lower targets are the $21.80 and $21.60 levels.
