Gold and Silver: Price is Losing its Luster again

• During the Asian trading session, the price of gold continued its decline.
• During the Asian trading session, the price of silver is in a strong bearish trend at $19.25.
• The gold price is losing its luster again, as aggressive bets on Fed tightening rose after higher-than-expected US inflation data.

Gold chart analysis

During the Asian trading session, the price of gold continued its decline from $1,736 to $1,710, representing a 1.20% drop since the start of trading last night. Yesterday’s low was at $1708, and we are very close to testing it again today. It is increasingly certain that the price will soon visit the $1700 support zone. The last time we were there was in August last year. For a bullish option, we need a new positive consolidation and a return above $1720 in order to form a bottom at the $1710 level. After that, the price could continue towards the $1730 level. A break above would move us significantly away from the negative zone, and our targets would be the $1740 and $1750 levels.

Silver chart analysis

During the Asian trading session, the price of silver is in a strong bearish trend at $19.25. The current price is $18.62, representing a 3.00% decrease since the start of trading last night. A strong dollar affects all goods denominated in the US dollar. We are now looking for potential first support at the $18.50 level. And now, we will add two more potential lower levels as the following targets are $18.25 and $18.00. For a bullish option, we must first consolidate above $18.75. Then with a further bullish continuation, we could try to test the $19.00 level. And the break of the silver price above would be resisted by the space for targets at $19.25 and $19.50 levels.

Market overview

The gold price is losing its luster again, as aggressive bets on Fed tightening rose after higher-than-expected US inflation data. According to the CME Fed Watch Tool, markets are pricing in an almost 80% chance of a total percentage point rise at the upcoming meeting. The Fed’s commitment to ‘front-loading’ may not go down too well with the market as a recession seems inevitable. In this context, the US dollar will likely remain in a win-win situation, as the transition to a safe-haven regime could increase demand for its haven.