Gold and Silver: New Lower Low

Gold Chart Analysis

The price formed a new lower low and strengthened the potential continuation of the bearish trend. Currently, we have found support at the $1640 level, and we see a price recovery to the $1650 level. If we stay above that level, we could climb up to the $1660 resistance level. A price break above it could further push the price into a safer zone. Potential higher targets are $1670 and $1680 levels. For the bearish option, we need a continuation of the negative consolidation and further pressure on the $1640 level of support. A price drop below would open up space for us towards lower support levels. Potential lower targets are $1630 and $1620 levels.

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Silver Chart Analysis

During the Asian trading session, the price of silver began to retreat from the $19.75 level, stopping at the $19.00 level. The pressure is still at this level, and if we do not find support here, we could see further price pullback. We need a break below for a bearish option, and then we would probably retest the $18.75 level, last week’s low. If we don’t manage to hold on there either, the potential lower target is the $18.50 level. We need to hold above the $19.00 support level for a bullish option. Then we need a new positive consolidation towards the $19.25 level and then to the $19.50 level. Additional resistances at the $19.50 level are all three moving averages.

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