Gold and Silver: Gold falls to the $2350 level on Monday
- During the Asian session, the price of gold was retreating from $2392 to the $2350 level.
- The price of silver has been in a bearish trend since the start of the Asian trading session.
Gold chart analysis
During the Asian session, the price of gold was retreating from $2392 to the $2350 level. A strong bearish consolidation pushed the price of gold down again after a week to test the EMA200 moving average. The bullish recovery has now reached $2361, but we are still below the EMA200. If we stay below for a long time, the price will be under increasing pressure to start a further retreat. Potential lower targets are $2350 and $2340 levels.
To be bullish, we have to go back above the EMA200 moving average and the $2365 level. Then it is necessary to hold on up there in order to form a bottom from which to start the next positive consolidation for recovery to the bullish side. Potential higher targets are $2370 and $2380 levels. In the zone around $2380, added pressure creates the EMA50 moving average.
Silver chart analysis
The price of silver has been in a bearish trend since the start of the Asian trading session. Support at $28.00 did not hold, and we saw a drop to a new seven-day low at the $27.56 level. For now, we are still in that zone with a slight recovery to the $27.80 level. If we stay in this zone for too long, we could easily slip to a new weekly low. Potential lower targets are $27.40 and $27.20 levels.
We must first get back above the $28.00 level for a bullish option. Above that, we get a small psychological advantage to initiate further growth above the EMA200 moving average and the $28.20 level. With the support of the EMA200, it will be quite easy for us to turn to the bullish side. Potential higher targets are $28.40 and $28.60 levels.
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