Gold and Silver: The gold price is above the $1780 level
- The price of gold managed to climb above the $1780 level yesterday.
- The price of silver is recovering for the second day in a row.
Gold chart analysis
The price of gold managed to climb above the $1780 level yesterday. During the Asian trading session, the price continued to rise to $1790, where we have some resistance for now. Consolidation is still taking place in the $1780-$1790 range. For a bullish option, we need a positive consolidation and a move above the $1790 level. Then it is necessary to maintain up there and with a new bullish impulse to continue the growth of the price of gold. Potential higher targets are the $1800 and $1810 levels.
For a bearish option, we need a negative consolidation and a drop below the $1780 level. Then we would return to the previous consolidation around the $1770 level. A break below this support zone would be a sign of a possible stronger pullback in gold prices. Potential lower targets are $1760 and $1750 levels.
Silver chart analysis
The price of silver is recovering for the second day in a row. We still have resistance at the $22.80 level. This new consolidation is another chance for us to move above. The first target is the $23.00 level, and then we need to maintain around this level if we want to see further recovery. Potential higher targets are the $23.20 and $23.40 levels. We need a negative consolidation and a price drop below the $22.50 level for a bearish option.
After that, we would see a further price drop to the previous low at the $22.00 level. Failure to stay above that level would lead to a further drop in the price of silver. Potential lower targets are the $21.80 and $21.60 levels.
