Gold and Silver: Quick Coming Back

• The price of gold formed a new two-year low this morning at the $1,614 level.
• During the Asian trading session, the price of silver continued the bearish trend from yesterday.

Gold chart analysis

The price of gold formed a new two-year low this morning at the $1,614 level. Then he soon finds that support and begins his recovery. The price is very quickly coming back above $1620, then the $1630 level, and now it is very close to the $1640 resistance level. Yesterday we tried to climb above but were unsuccessful as the price pulled back. To continue this bullish option, we need a break above the price and try to keep it there. Then, with a new bullish impulse, we could expect a recovery and an escape from the critical zone. Potential higher targets are $1650 and $1660 levels. In the zone around $1655, we will encounter the MA200 moving average. For the bearish option, we need a negative consolidation and a return of the price to this morning’s support zone at the $1620 level. A fall in the price of gold below would increase the bearish pressure, and we would likely see a continuation of the decline to lower levels. Potential lower targets are $1610 and $1600 levels.

Silver chart analysis

During the Asian trading session, the price of silver continued the bearish trend from yesterday. In the European session, we see the formation of a new lower low at the $17.90 level. The price finds support there and begins to recover by crossing first above the $18.00 level. We are currently at the $18.30 level and moving towards the $18.50 resistance level. Additional resistance in that zone is the MA50 moving average. This moving average was an obstacle to our bullish trend in the previous two meetings. Moving above the price of silver could rise to the previous high at the $18.75 level. A potential higher target is the $19.0 level. We need another negative consolidation and a return to the $18.00 support level for a bearish option. A price drop below could form a new lower low, and the targets are $17.75 and $17.50.