Gold and Silver: The Gold’s Price High at the $1675 Level
- This morning, the price of gold formed a new ten-day higher high at the $1675 level.
- The price of silver managed to climb up to the $19.80 level today.
Gold chart analysis
This morning, the price of gold formed a new ten-day higher high at the $1675 level. After which, it makes a pullback to the $1668 level. Gold could go down to $1,660, the level of the previous breakout. If we do not find support here, the price of gold could continue the bearish trend and test the previous low at the $1650 level.
Potential lower targets are $1640 and $1630 levels. For a bullish option, we need a positive consolidation and a move toward the $1680 level. Then we need to stay there and try with a new bullish impulse to continue the bullish trend. Potential higher targets are $1690 and $1700 levels.
Silver chart analysis
The price of silver managed to climb up to the $19.80 level today. After that, we see a minor pullback to the $19.60 level. If we fail to get back above, the price of silver could fall further to the $19.20 support level. If the bearish pressure continues, the price of silver will continue the bearish trend.
Potential lower targets are the $19.00 and $18.80 levels. For a bullish option, we need a positive consolidation and a return to the $19.80 level. Then we need to move above and try to reach the $20.00 level. Potential higher targets are the $20.2 and $20.40 levels.
Market overview
Inflation remains stubbornly high, so monetary policy is likely to tighten further. US benchmark yields are likely to rise given the US Federal Reserve’s hawkish tone. The USD index, which measures the greenback’s performance against a basket of currencies, hit a one-month low amid diminishing prospects for more aggressive policy tightening by the Fed.
Gloomy US macro data released on Tuesday pointed to worsening growth in the world’s largest economy and could force the US central bank to ease its hawkish stance.
