Gold and Silver: Gold remains above $1850 for now
- In the previous two days, the price of gold based its movement around the $1,860 level.
- During the Asian trading session, the price of silver falls to the $21.80 level.
Gold chart analysis
In the previous two days, the price of gold based its movement around the $1,860 level. We moved down a step closer to the zone around the $1850 level. We need a negative consolidation and a better support test at the $1850 level for a bearish option. A break below would mean we could see a continuation of the decline in the price of gold.
Potential lower targets are the $1840 and $1830 levels. We need a positive consolidation for a bullish option and move above the $1870 level. Then we need to hold up there in order to have a better position for the next bullish impulse and recovery. Potential higher targets are the $1880 and $1890 levels.
Silver chart analysis
During the Asian trading session, the price of silver falls to the $21.80 level. It manages to find support there and recovers to the $22.00 level. Again we see instability at that level and a new bearish consolidation, and this pullback to the $21.80 level. We need a break below for a bearish option and try to hold down there.
After that, we could expect a further drop in the price of silver. Potential lower targets are the $21.60 and $21.40 levels. We need a price return above the $22.00 level for a bullish option. Then, we should stay up there and, with a positive consolidation, start the continuation of the recovery. Potential higher targets are the $22.20 and $22.40 levels.
