Gold and Silver: gold under pressure below the $1980 level

Gold chart analysis

The price of gold is in retreat after Friday’s jump to the $1993 level. During the Asian session, the price continued to fall with the formation of a new low at the $1973 level. We managed to stop there and briefly recover to the $1985 level.

Here, we now encounter new resistance and begin a pullback below the $1980 level. We are now on our way again to test this morning’s low. There is a probability that we will see a breakout below and a new low formed.

Potential lower targets are $1970 and $1965 levels. We need a positive consolidation and return to the zone around the $1985 level for a bullish option. We then need a break above and try to hold above there before continuing to the bullish side. Potential higher targets are $1990 and $1995 levels.

Silver chart analysis

On Friday, we saw a jump in the price of silver to the $24.14 level. After that, the price began to retreat, which continued at the beginning of this week. This led to the formation of a new low at the $23.50 level. For now, we manage to stay at that level and slightly recover to the $23.61 level. We are still under bearish pressure and can expect silver to continue its retreat. Potential lower targets are $23.40 and $23.20 levels.

Additional support in the zone around $23.20 was the EMA50 moving average, and there, we could expect stronger support for the price of silver. We need a positive consolidation and a price jump above the $23.80 level for a bullish option. Then we would have to hold our own up there. With a new impulse, we would start a further increase in the price of silver. Potential higher targets are $24.00 and $24.20 levels.

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