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Gold and Silver: One-month Low

  • Gold prices hit a one-month low on Monday under pressure from a strong dollar.
  • During the Asian trading session, the price of silver continued the bearish trend from Friday and stopped at the $18.30 level.
  • The US dollar is climbing to a new two-decade high.

Gold chart analysis

The price of gold hit a one-month low on Monday under pressure from a strong dollar after Powell made it clear on Friday that he would continue the aggressive monetary policy to curb inflation. During the European trading session, the price of gold finds support at the $1720 level and moves towards the $1730 current resistance level. For a bullish option, we need a break price above the $1730 level, and after that, we would get support in the MA20 moving average. Then we would need a new positive consolidation that would push the price of gold to the $1740 level. Potential higher targets are $1750 and $1760, last week’s resistance level. We need a negative consolidation and a break in gold prices below the $1720 level for a bearish option. Potential lower support targets are the $17104 and $1700 support levels.

Gold chart analysis

Silver chart analysis

During the Asian trading session, the price of silver continued the bearish trend from Friday and stopped at the $18.30 level. For a few hours now, we have managed to stay above that level; based on that, the price of silver could return above the $18.50 level. Additional resistance at that level could be in the MA20 moving average. A price break above should positively impact silver and help it continue. Potential higher targets are $18.75 and $19.00 levels. We need a new negative consolidation and a return to the support zone at the $18.25 level for a bearish option. If we fail to maintain that level, a continuation of the silver price pullback could occur. Potential lower targets are $18.00 and $17.75 levels.

Silver chart analysis

Market Overview

Strong growth in USD buying and rising US bond yields continue to influence gold price movements. The US dollar is climbing to a new two-decade high amid growing signs of more aggressive Fed rate hikes.



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