Gold and silver are making moves towards support levels

Gold chart analysis

During this morning’s Asian trading session, the price of gold rose to $2529, a new weekly high. After that, a bearish consolidation and a pullback below the $2512 weekly open price followed. In the continuation, the price formed a weekly low at the $2501 level. Pressure is growing on the price of gold to continue its retreat below the EMA 50 moving average and the $2,500 level.

Potential lower targets are $2495 and $2490 levels. For a bullish option, we need a positive consolidation and a return above $2520. Then, gold needs to hold up there to continue the bullish momentum. After that, we expect a test of this morning’s high and the formation of a new one. Potential higher targets are the $2535 and $2540 levels.

Silver chart analysis

During this morning’s Asian trading session, the price of silver retreated below the $30.00 level. Support at the weekly open price of $29.80 did not hold back either, but we saw a strong bearish impulse below. The price broke down to $29.30 on the EMA 200 moving average. The decline has been stopped for now, and silver has support here. To return to the bullish side, we need positive consolidation and stabilization of the price above the $29.60 level.

After that, the chances of a further advance to the bullish side increase. Potential higher targets are $29.70 and $29.80 levels. For a bearish option, we need a negative consolidation and a pullback of silver below the EMA 200 moving average. With that, we move to a new weekly low and confirm that we are under a bearish pattern. Potential lower targets are $29.20 and $29.10 levels.

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