Gold Price Drops Below $1990 – What to Expect Next?
- The price of gold fell yesterday after the news about US inflation from $2030 to $1990 level.
- On Monday, the price of silver rose to the $23.07 level, forming this week’s high.
Gold chart analysis
The price of gold fell yesterday after the news about US inflation from $2030 to $1990 level. During the Asian trading session, we stayed low in that zone. The price slides down to the $1986 level in the EU session. Gold continues to be under pressure, and we could see it below today’s low. Potential lower targets are $1985 and $1980 levels.
We need a positive consolidation and a move above the $1995 level for a bullish option. Then we also need to stay up there in order to start a bullish consolidation from there and start a recovery. Potential higher targets are $2000 and $2005 levels.
Silver chart analysis
On Monday, the price of silver rose to the $23.07 level, forming this week’s high. From there, we start pulling back the price to $22.50. A new bullish consolidation has brought us to the $22.90 level, where we encounter resistance: US inflation data has pushed the price of silver down to the $22.00 level. During the Asian trading session, the price remained low, and later, we saw the formation of a new low at the $21.91 level.
The pressure on the price of silver continues, and the potential lower targets are $21.80 and $21.70. We need to move above the $22.10 level for a bullish option. With that, we would break through the Asian level resistance and ease the way for a new bullish consolidation and recovery. Potential higher targets are the $22.20 and $22.30 levels.
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