- During the Asian session, the price of gold failed to maintain the 1680 level, and we saw a new pullback towards the $1660 support level.
- The price of silver is in a better position than gold.
- This week we are expecting a lot of reports from central banks.
Gold chart analysis
During the Asian session, the price of gold failed to maintain the 1680 level, and we saw a new pullback towards the $1660 support level. We currently have a minor recovery to the $1665 level, but bearish pressure is still very much present on the chart. In that case, the gold price could break below the support level and continue to slide even lower. Potential lower targets are $1650 and $1640 levels. For a bullish option, we need a new positive consolidation and a return to this morning’s resistance zone at the $1680 level. If we managed to climb above the price of gold, it would form a new higher high, and that would be a sign of a possible continuation of the recovery. Potential higher targets are $1,690 and $1,700 levels. Additional resistance at that level is in the MA200 moving average.
Silver chart analysis
The price of silver is in a better position than gold. This morning we saw it at the $19.70 level, after which the price retreated to the $19.25 level. If the bearish pressure continues, the price could fall further. Potential lower targets are $19.00 and $18.75 previous low. A price break below this low could push us into an even greater retreat in the price of silver. And we could target the sitting support at the $18.50 level. For a bullish option, we need a new positive consolidation and a price return above the $19.50 level. Then the gas price should try to hold above and continue upwards with a new bullish impulse. Potential higher targets are $19.75 and $20.00 levels.
This week we are expecting a lot of reports from central banks. The Fed is expected to raise the key interest rate from 2.50% to 3.25% on Wednesday. Then on Thursday, the Swiss National Bank also announced an increase in the interest rate from -0.25 to 0.50%, and before that, the BOJ has a report on its interest rate, but the forecasts are that it will remain at the same -0.10%. And for the end of Thursday, we have the report of the BOE bank of England and the announcement of an interest rate increase from 1.75% to 2.25%.
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