What Happened to Gold After Breaking Below $2030?
- The price of gold fell to $2020 on Friday.
- The price of silver continues the previous bullish consolidation on Monday.
Gold chart analysis
The price of gold fell to $2020 on Friday. After consolidation in the zone around the $2030 level, there was a breakout below and the gold price weakened and retreated to Friday’s low. Gold stops there and closes the previous week at the $2024 level.
During the Asian trading session, gold moved in the $2022-$2028 range, staying close to last week’s support level. The price is under bearish pressure to continue further retreat below this level.
Potential lower targets are the 2015$ and 2010$ levels. We need to stabilize above the $2027 level for a bullish option. Holding in that zone could generate a bullish impulse and a jump to the $2030 level.
In the zone around $2030, we encounter the EMA200 moving average, and we need to jump over that resistance in order to start a further recovery. Potential higher targets are $2035 and $2040 levels.
Silver chart analysis
The price of silver continues the previous bullish consolidation on Monday. On Thursday, the price fell to the $22.12 level. After the support at that level, a bullish consolidation was initiated that continues today. During the Asian trading session, silver finds support at the $22.60 level in the EMA200 moving average.
With the bullish consolidation, the price rose to $22.94, forming the current daily high. For now, we stop there and slightly pull back to the $22.85 level.
We need new support at that level in order to start growing again. Potential higher targets are $23.00 and $23.10 levels. A pullback below $22.80 would indicate that silver is losing strength and that a drop to new lower support is coming.
Potential lower targets are $22.70 and $22.60. At the $22.60 level, we would test the EMA200 moving average again, just like this morning.
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