Gold and Silver: Gold drops below $2320 this morning

• Gold prices continued to slide during this morning’s Asian trading session. 
• During this morning’s Asian trading session, the price of silver fell below the $30.00 level. 

Gold chart analysis

Gold prices continued to slide during this morning’s Asian trading session. A new 20-day low was formed at the $2314 level. The price stabilises for now and slightly recovers to the $2327 level. In this zone, we are testing the weekly open price and need another impulse to move us to the positive side. A jump to $2330 would be ideal to start a further recovery to the bullish side.

Potential higher targets are $2335 and $2340 levels. Gold could have additional resistance in the EMA50 moving average around the $2335 level. We need a price pullback below the $2320 level for a bearish option. With that step, we are testing this week’s low. Increased price pressure could easily create a new bearish impulse to a new lower low. Potential lower targets are $2315 and $2310 levels.

 

Silver chart analysis

During this morning’s Asian trading session, the price of silver fell below the $30.00 level. After just over two weeks, we saw the price again below $30.00, forming a low at the $29.76 level. After the new support, we stabilised there and returned above the $30.00 level. We need a return above the $30.40 weekly open price. Thus, silver returns to the positive side and would have a better position from which to initiate a recovery.

Potential higher targets are the $30.60 and $30.80 levels. We have greater resistance in the $31.00 zone and the EMA200 moving average. We need a negative consolidation and pullback below the $30.00 level for a bearish option. This brings the price back to this morning’s support zone. New instability would mark the bearish momentum and take us to a new lower low. Potential lower targets are $29.60 and $29.40 levels.

 

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