- During the Asian trading session, the price of gold again finds support at the $1660 level.
- For the fourth time in the last seven days, the price of silver is trying to make a more concrete break above the $19.50 level.
- We can expect increased volatility in the movement of the gold price.
Gold chart analysis
During the Asian trading session, the price of gold again finds support at the $1660 level. After which we see a bullish impulse and rising gold prices. First, a break was made above $1670, and now we are climbing towards the $1680 resistance level. In the previous two attempts, we failed to rise above. If we could do it now, we need to stay above it and continue towards the $1690 level with a new bullish consolidation. Additional resistance at that point is in the MA200 moving average. A potential higher target is the $1700 level. We need further negative consolidation and a price drop below the $1670 level for a bearish option. If we find ourselves below MA20 and MA50, we will move to the bearish side. This would increase the bearish pressure, and we would once again find ourselves in the support zone around the $1660 level. A fall in the gold price below would first test the September low at the $1655 level, and perhaps we could see the formation of a new lower low.
Silver chart analysis
For the fourth time in the last seven days, the price of silver is trying to make a more concrete break above the $19.50 level. During the Asian session, the price of silver advanced from the $19.25 level with support in all moving averages. We are now above that level again and could climb today to the $19.75 level. We need a continuation of this positive consolidation for such a move. And the potential next target is the $20.00 level. For a bearish option, we need a new negative consolidation and a drop in the price of silver below the $19.50 level. Then we need to stay there and continue with the decline. Potential lower targets are $19.25 and $19.00 levels.
We can expect increased volatility in the movement of the gold price later when the Fed publishes a report on the interest rate increase.
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