Gold and Silver: Gold above support at the $2050 level
The price of gold rose to the $2062 level on Friday, with a strong bullish consolidation.
Last Friday was very positive for the price of silver as we saw a jump to the $23.52 level.
Gold chart analysis
The price of gold rose to the $2062 level on Friday, with a strong bullish consolidation. Thus, we see the formation of a new weekly high from which we retreat to support at the $2040 level. With the new bullish consolidation, the price starts a new rally and successfully climbs above the $2050 level. During the Asian trading session, gold continues to grow and moves to $2060, where it forms today’s high. For now, we encounter resistance at that level and move in the $2050-$2060 range.
We need a break above $2060 in order to try to reach the high from Friday and start a further continuation with the conquest of higher levels. Potential higher targets are $2065 and $2070 levels. For a bearish option, we need a negative consolidation and pullback to support at $2040. There, we would retest the EMA50 moving average. A fall below would indicate a further pullback and a visit to lower levels. Potential lower targets are $2035 and $2030 levels.
Silver chart analysis
Last Friday was very positive for the price of silver as we saw a jump to the $23.52 level. There, the bullish impulse stopped, and the price started to pull back to the $23.00 support level. During the Asian trading session, silver successfully recovered with the support of the EMA50 moving average in the zone around the $23.20 level. We formed a daily high at $23.30, and for now, this level is a resistance for us to continue to the bullish side.
We need a break above if we want to see continued silver price recovery. Potential higher targets are $23.40 and $23.50 levels. We first need a drop below $23.00 and the EMA50 moving average for a bearish option. With that, the price of silver would move to the bearish side, and we would expect to start a further retreat. Potential lower targets are $22.90 and $22.80 levels.
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