Gold and Silver: Gold is holding above $1890 level

Gold chart analysis

The price of gold has been in a bearish trend all this week, with a new low at the $1884 level. During the Asian trading session, the price recovered to $1895, where we encounter today’s resistance. We turn again to the bearish side, making a negative consolidation with a tendency to visit the previous low. Potential lower targets are $1880 and $1875 levels.

We need a positive consolidation and return above the $1900 level for a bullish option. Then we would have to hold up there if we want to see a continuation to the bullish side. Potential higher targets are $1905 and $1910 levels.

Silver chart analysis

Silver’s price has been slightly recovering since Tuesday and fell to the $22.21 level. Yesterday we had a bullish impulse and a jump in the price of silver to $23.00, but we quickly retreated below the $22.80 level. During the Asian trading session, the price moved in the $22.70-$22.80 range. The chart shows a bullish consolidation that could soon make a breakthrough above $22.80 and take us up to the $23.00 level.

We have additional resistance in the zone around $22.80 in the EMA50 moving average, and we need a break above it. Potential higher targets are $23.20 and $23.40 levels. We need a negative consolidation and a drop below the $22.60 support level for a bearish option. A break below would mean that the price is starting to weaken and descend to lower support levels. Potential lower targets are $22.40 and $22.20 levels.

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