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Gold and Silver: One-month higher high

  • During Asian trading, the price of gold was in the range of $1760-1765.
  • During that week, the price of silver rose from $18.25 to $20.35.
  • US dollar selling bias after the FOMC remains unchanged on the first day of the new week.

Gold chart analysis

During Asian trading, the price of gold was in the range of $1760-1765, and during the European session, the price of gold continued to rise to the $1775 level. We must stay above the $1770 level to continue the bullish option. If we could do that, we would have a chance for a new bullish impulse. Potential higher targets are $1780 and $1790 levels. We need a return below the $1770 level for a bearish option. After that, a negative consolidation towards lower support levels could follow. In the zone around $1760, the price could find support in the MA20 and MA50 moving averages. A price break below would drop us to $1750, the first potential support. If the bearish trend continues, the following targets are the $1740 and $1720 levels.

Gold chart analysis

Silver chart analysis

After the price moved in consolidation in the first part of the previous week, a bullish impulse followed on Wednesday, which continued until the end of the week. During that week, the price of silver rose from $18.25 to $20.35. During the Asian session, we had short pullbacks, but after that, a new bullish impulse followed, which formed a new one-month higher high at $20.45. A weak dollar pushes the price of silver and gold higher. For a bullish option, we now need a break above the $20.50 level. After that, the price should continue towards the $20.75 and $21.00 levels. For a bearish option, we need a pullback below $20.25. After that, we would see a break below the support line and go down to the $20.00 support zone. A price drop below would increase bearish pressure, and potential lower targets are the $19.75 and $19.50 levels.

Silver chart analysis

Market overview

US dollar selling bias after the FOMC remains unchanged on the first day of the new week. Last week, the Federal Reserve sounded less hawkish and hinted that it may at some point slow the pace of its policy-tightening campaign amid signs of a slowdown. The disappointing US second-quarter advance GDP report confirmed a technical recession and fueled speculation that the Fed will not raise interest rates as aggressively as previously estimated. Important US macro data awaits us at the start of the new month, which could play a key role in determining the next step in the gold price movement. This week’s rather busy US economic situation begins with the ISM Manufacturing PMI release on Monday. This, along with US bond yields, will affect the dollar and the prices of commodities such as gold and silver.



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