Gold and silver: Gold shines at new highest levels

Gold chart analysis

The price of gold rose to a new all-time high yesterday at the $2531 level. After the formation of a new high, a pullback to the weekly open price and the $2510 level was initiated. In the first attempt, the price managed to gain support and start a recovery this morning to the $2520 level. There, we encountered new resistance and started a new retreat. This time, it forms a daily low at the $2504 level. Gold is now trying to hold here and looking for support at the EMA 50 moving average.

To continue to the bullish side, we need a positive consolidation of the price of gold and a rise above $2520. After that, the chance to see further progress to the bullish side and the formation of a new daily high increases. Potential higher targets are the $2525 and $2530 levels. A drop below the EMA 50 and $2500 for a bearish option is the first evidence that the price is under pressure and that we will see a pullback to a new daily low. Potential lower targets are $2495 and $2490 levels.

Silver chart analysis

The price of silver from the EU rose to $29.96 on Tuesday. A new August high was formed there, and we were a little short of reaching the $30.00 level. The inability to continue on the bullish side triggered the pullback. The price dropped to $29.40 and held there. During the Asian session, silver was quite calm and hovered in the $29.40-$29.50 range. Now, in the US session, we see a slight recovery to the $29.66 level.

This could trigger a bullish consolidation and send us to higher levels. Potential higher targets are $29.80 and $30.00 levels. For a bearish option, the price of silver would have to break below $29.40 this morning’s support. With that step, we will form a new daily low and confirm that silver is on the defensive. Potential lower targets are $29.20 and $29.00 levels.

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