Gold and Silver: The gold is testing support at $1,850
- The price of gold continues to slide today, extending the bearish trend since February 2.
- Yesterday, the price of silver fell below $22.00 for the first time in three months.
Gold chart analysis
The price of gold continues to slide today, extending the bearish trend since February 2. During the Asian trading session, the price of gold fell to the $1851 level, and we are now testing support at the $1850 level. The dollar index has been stable for a week and is slowly recovering, negatively affecting gold prices.
We need a negative consolidation and a drop below the $1850 support for a bearish option. With that, we would form a new lower low and probably see a continuation of the fall in the price of gold. Potential lower targets are the $1840 and $1830 levels. For a bullish option, we need positive consolidation and growth above the $1880 level. If we stay up there, we will have a good starting position for the next bullish impulse and continued recovery.
Silver chart analysis
Yesterday, the price of silver fell below $22.00 for the first time in three months. During the Asian trading session, the price of silver fell to the $21.80 level, after which it returned above $22.00 with a strong bullish impulse. The price jumps to $22.28, forming a lower high and making a new turn towards the $22.00 level.
For the bearish option, we need a breakout below and a negative consolidation for the price to continue falling. Potential lower targets are the $21.80 and $21.60 levels. For a bullish option, we need positive consolidation and a return to the resistance zone around the $22.60 level. by crossing above, we would significantly move out of the uncomfortable zone, and we could continue the recovery.
