Gold and silver: gold faces a new challenge at $2400
The price of silver fell to $26.48 on Monday, forming a weekly low.
Gold chart analysis
During this morning’s Asian trading session, the price of gold received support at the $2390 level. After that, we looked at the initiation of a bullish consolidation above $2400. A daily high was formed at $2405, and we are testing the EMA 50 moving average here. If we get support, we can expect to start further growth on the bullish side. Potential higher targets are the $2410 and $2420 levels.
The price of gold could face resistance at $2410 and the EMA 200 moving average before continuing the recovery. We need a negative consolidation and a return to this morning’s support for a bearish option at $2390. The impulse below will form a new low and thus confirm that the price is under pressure to continue to the bearish side. Potential lower targets are $2380 and $2370 levels.
Silver chart analysis
The price of silver fell to $26.48 on Monday, forming a weekly low. Further decline was stopped, and the price started a lateral consolidation. During this morning’s Asian session, the movement took place in the $26.60-$27.20 range. Additional pressure on the upper line of this range is the EMA 50 moving average. We would have to skip that level if we plan to start a bullish consolidation.
Potential higher targets are the $27.40 and $27.60 levels. The 200 EMA is still a little above the $28.00 level. For a bearish option, the price of silver would have to visit support at $27.60 again. The new pressure could easily push the price of silver to a new daily low and thus confirm the bearish momentum. Potential lower targets are the $26.60 and $26.40 levels.
