Gold and Silver: Gold retreats below the $1950 level

• Yesterday, we saw a drop in the price of gold from $1982 to $1942.
• The price of silver fell from $25.50 to $24.00 level yesterday.

Gold chart analysis

Yesterday, we saw a drop in the price of gold from $1982 to $1942. The reason is the increase in the interest rate from EBC. During the Asian trading session, the price of gold managed to consolidate and jump to the $1956 level. At that level, we encounter resistance and the price retreats to the $1950 level. It is possible that we will retest the previous support zone, and we may see a breakout below. Potential lower targets are the $1940 and $1930 levels.

For a bullish option, we need a positive consolidation and a return of the price above the $1956 level. Then, we need to stay up there and start further recovery with a new impulse. Potential higher targets are $1960 and $1970 levels. We could have additional resistance in the zone around $1960 in the EMA50 moving average.

 

Silver chart analysis

The price of silver fell from $25.50 to $24.00 level yesterday. During the Asian trading session, the price consolidated in the $24.00-$24.20 range. In the EU session, we see the continuation of a movement, and we need some impulse to start the trend.

We need a positive consolidation and a move above the $24.20 level for a bullish option. Then, we need to stay up there and start the recovery with a new impulse. Potential higher targets are $24.40 and $24.60 levels. Additional resistance to the bullish option is the EMA50 moving average in the zone around the $24.60 level.

We need a negative consolidation and a price drop below the $24.00 level for a bearish option. After that, we will form a new two-week low and confirm the bearish scenario. Potential lower targets are $23.80 and $23.60 levels.