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Gold and Silver: Seven-day High 

  • The price of gold reached its seven-day high at $ 1,865, using a weak dollar. Early this morning, the price broke above $ 1,850, after which it stopped at $ 1,865.
  • During the Asian session, the price of silver was in a bullish trend from the starting position of $ 21.80 to the current $ 22.15.
  • Gold continues its recovery; at the same time, silver is also growing.

Gold chart analysis

The price of gold reached its seven-day high at $ 1,865, using a weak dollar. Early this morning, the price broke above $ 1,850, after which it stopped at $ 1,865. We now have a smaller pullback to $ 1860, and we are looking at how this consolidation will continue. We can also form a growing channel on the chart and, based on it, monitor the movement of the price of gold. Looking at that, we can now expect a pullback again to the $ 1850 price or the lower support line. For the bullish option, we need a continuation of this positive consolidation and a new break above $ 1870. After that, we can expect further growth towards the following bullish levels. Potential bullish targets are $ 1880, $ 1890, $ 1900 and $ 1910, a previous high since May 5.

Gold chart analysis

Silver chart analysis

During the Asian session, the price of silver was in a bullish trend from the starting position of $ 21.80 to the current $ 22.15. In percentage terms, the daily jump is 2.2%. In the zone around $ 2.25, we come across an upper trend line that could represent potential resistance and send the price back to lower levels of support. Should such a scenario occur, the price could drop to $ 21.58, our previous Friday’s low. Marriage below our bottom line would increase bearish pressure, and we might retest the previous low at $ 20.42. We need a break above the $ 22.25 level for the bullish option. After that, we can expect further price growth with the continuation of positive consolidation. Potential bullish targets are $ 22.50, $ 22.66, $ 23.00 and the May high at $ 23.34.

Silver chart analysis

Market overview

Gold continues its recovery; at the same time, silver is also growing. Commerzbank economists note that sales pressure on yellow metal seems to have eased. Gold gained support due to the weakening US dollar. Moreover, gold is finding the favor of ETF investors again. “According to CFTC statistics, speculative financial investors moved away last week until May 17, and their net long positions are also at the lowest level since last September. However, in our opinion, this should have adjusted the market now, which means that the sales pressure created by this group of investors should have been significantly reduced. ”

In the first four months of this year, China tripled its investment in solar energy. The value of the inversions is about 4.3 billion dollars, according to the National Energy Administration of the country. Silver should benefit from rising demand from the photovoltaic industry amid decarbonization efforts, which should increase the price in the long run.



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