The price of gold was again forced to test the weekly support level on Thursday
On Wednesday, the price of silver has spent time consolidating in the support zone

Gold chart analysis

The price of gold was again forced to test the weekly support level on Thursday. After a successful test, we saw the initiation of a bullish consolidation up to the $2630 level. Then, during this morning’s Asian session, gold continued to rise to the $2647 level, forming a new three-day high there. We are currently encountering resistance in that zone and pulling back to the $2640 level.

The EU session brought pressure on gold, and we should see a further decline to the EMA200 moving average in the $2633 zone. If the support is not adequate, the price will have to drop to a new daily low. Potential lower targets are $2625 and $2620 levels. For a bullish option, we plan to hold above the EMA 200 moving average. After that, the price has a new opportunity to initiate a bullish consolidation and return to the bullish trend. Potential higher targets are $2645 and $2650 levels.

Silver chart analysis

On Wednesday, the price of silver has spent time consolidating in the support zone. On Thursday, a bullish consolidation was initiated up to the $31.00 level. During this morning’s Asian trading session, the price continued to rise to $31.34, forming a three-day high at that level. With the beginning of the EU session, the price loses its bullish momentum and turns to the bearish side. Bearish pressure is strengthening again as we have pulled back below the EMA 200 moving average.

If we don’t stabilize in the $31.00 zone soon, the pullback will continue to a new daily low. Potential lower targets are $30.80 and $30.60 levels. For a bullish option, we need to get back above the EMA 200 and $31.20. After that, we expect the bullish momentum to strengthen, and with the support of the moving average, we will start a bullish trend. Potential higher targets are $31.40 and $31.60 levels.