08 August chart overview for Gold and Silver
Gold chart analysis
During the Asian trading session, the price of gold managed to remain above the $1770 level. As the day goes on, the price of gold slowly rises and crosses above the $1780 level. If the trend continues, the price of gold could rise to $1790, where we encountered resistance on Friday. We need a return above the $1790 level for a bullish option. After that, the price needs to hold above that level for the next bullish impulse to follow. Potential higher targets are $1800, $1810 levels. We need a new negative consolidation and price pullback below the $1770 support zone for a bearish option. At the $1765 level, additional support is provided by the MA200 moving average. Potential lower targets below the moving average are the $1750 and $1740 levels.
Silver chart analysis
During the Asian trading session, the price of silver finds support at the 19.75% level. Additional support is provided by the MA200 moving average, and based on this, we could expect a continuation of the price recovery. Silver is back above $20.00, and it is climbing to the $20.25 level in the European trading session. We currently have resistance there, and we can expect a shorter consolidation at that level. We need further positive consolidation to the $20.50 level to continue the bullish option. Above, we expect the next major potential resistance. If we overcome that zone, we will probably see the price of silver at the 21.004 level. We need a pullback below the $20.00 level for a bearish option. After that, we once again reach the $19.75 August low. A break of the silver price below would bring us down to the $19.50 level, last week’s minimum. Potential lower targets are $19.25 and $19.00 levels.
Market overview
San Francisco Fed President Mary Daly spoke over the weekend that the Fed is far from winning the fight against inflation and that she expects a 0.50% hike is still in play. News like this could slow down the growth of the gold price and even stop it. Reuters reported that China is ready for military exercises east of the middle of the Taiwan Strait. China’s Ministry of Foreign Affairs announced on Friday that it would sanction US House Speaker Nancy Pelosi for her visit to Taiwan last week.
