- The price of gold managed to make a break above $1730 today and could now continue to $1740 and thus form a new monthly higher high.
- On September 1, the price of silver was $17.50, and now it is at the $19.50 level.
- This week is full of economic data, the most important being the CPI from USD, EUR and GBP. Then GDP reports for GBP and NZD.
Gold chart analysis
The price of gold managed to make a break above $1730 today and could now continue to $1740 and thus form a new monthly higher high. The dollar index is in retreat, and the price could take advantage of that. This morning, the price of gold had fallen to the $1710 level, followed by a bullish impulse. Now we need a positive consolidation up to the $1740 level. Then we could try to break above and try to hold above. Potential higher targets are $1750 and $1760 levels. We should go back below the $1730 level for a bearish option. After that, the gold price could drop to the $1720 support level, and additional support is provided by the MA20 and MA50 moving averages. A fall in the price of gold below could take us down to the $1710 level and the MA200 moving average. Potential lower targets are $1,700 and $1,690 September low.
Silver chart analysis
On September 1, the price of silver was $17.50, and now it is at the $19.50 level. The dollar withdrawal had a positive effect on the price of silver. Now we can say that we are looking towards the $20.00 level. We have support in the moving averages, and a break was made above the previous high at the $19.35 level of August 26. The first next target is the $19.88 level from August 18, and then the next $20.00 level. We need a negative consolidation and a rejection from the $19.50 level for a bearish option. After that, we could expect a further pullback first to the $19.25 level, then to the $19.00 level. This morning’s low was at the $18.75 level; if a break were to happen, the price could retreat even deeper. A larger support zone is at the $18.50 level.
This week is full of economic data, the most important being the CPI from USD, EUR and GBP. Then GDP reports for GBP and NZD. On Thursday, we are waiting for the BOE report on the interest rate increase, and on Friday, we have report on Industrial production from China. This is going to be a very interesting week for the gold price.
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