Gold and Silver: Gold is testing the EMA50 moving average

Gold chart analysis

During the Asian trading session, the price of gold was retreating from $1992 to $1982. At that level, we get support and meet the EMA50 moving average. After that, we see the initiation of a new bullish consolidation and a move to the $1987 level where we are now. We expect to see continued growth and a visit to last week’s levels. Potential higher targets are $1990 and $1995 levels.

For a bearish option, we need a negative consolidation and a price drop below the EMA50 to the $1980 level. That would be the first sign that the price of gold is weakening, and we would see the formation of a new low. This would confirm the bearish option and the potential lower targets are $1975 and $1970 levels.

Silver chart analysis

During the Asian trading session, the silver price moved in the $23.10-$23.20 range. In the EU session, we continue with that lateral movement. We are currently testing the upper level at $23.20, and we could expect a break above and continuation to the bullish side. Then we would have to stay up there to start further recovery from there. Potential higher targets are $23.30 and $23.40 levels.

For a bearish option, we need a negative consolidation and a price drop below the $23.10 support level. After that, we would be able to test the $23.00 level. Additional support in that zone is the EMA50 moving average, and a break below it would only increase the bearish pressure on the price to continue its retreat. Potential lower targets are $22.90 and $22.80 levels.

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