Gold and Silver: Gold is pulling back from this morning
The price of gold rose to the $2477 level on Friday, forming a new two-week high.
During this morning’s Asian trading session, the price of silver encountered resistance at the $28.60 level.
Gold chart analysis
The price of gold rose to the $2477 level on Friday, forming a new two-week high. Shortly after that, it quickly pulled back to the $2410 level. The price found support in the EMA 200 moving average and managed to hold above it. During this morning’s Asian trading session, it reached $2460 and encountered resistance there. Further above, the price had no strength, and a new pullback to EMA200 followed, this time to a $2420 support level.
With a break below, gold will be forced to form a new weekly low and thus confirm the move to the bearish side. Potential lower targets are $2410 and $2400 levels. If we get support here and hold above the 200 EMA, the price of gold could initiate a positive consolidation. After that, we expect a return above $2450 and a test of this morning’s high. Potential higher targets are $2460 and $2470 levels.
Silver chart analysis
During this morning’s Asian trading session, the price of silver encountered resistance at the $28.60 level. The inability to continue above triggered a bearish consolidation and price decline to $27.64. With this step, we hint that a further decline could continue, and a new weekly low could be created. It also broke the previous Friday’s low at $27.93. Potential lower targets are $27.40 and $27.20 levels.
For a bullish option, we need a positive consolidation and a return above the $28.00 level first. Silver then needs to stabilize there before initiating further recovery. After that, we can hope for a return to the bullish side. Potential higher targets are $28.20 and $28.40 levels. Additional resistances in the EMA 50 and EMA 200 are in the $28.50-$28.60 zone.
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