Gold and Silver: Gold continues to hold above $2400 level

• The price of gold retreated to the $2,393 level on Friday evening.
• The price of silver fell below the $29.00 level on Friday, forming a weekly low of $28.85. 

Gold chart analysis

The price of gold retreated to the $2,393 level on Friday evening. During this morning’s Asian trading session, we moved back above $2400 and are holding above that level for now. The pressure keeps us low, and it could easily happen that the price of gold will give way and move below $2400 again. After that, we are again looking at Friday’s low at $2393. The price could form a new lower low depending on the bearish momentum.

Potential lower targets are the $2390 and $2380 levels. For a bullish option, the price of gold would have to reach the $2410 level first. That would climb to this morning’s high, giving it a new opportunity to break above and form a new weekly high. Potential higher targets are the $2420 and $2430 levels. We have additional support at $2420 in the EMA 200 moving average.

Silver chart analysis

The price of silver fell below the $29.00 level on Friday, forming a weekly low of $28.85. After that, until the market closed, the price recovered to $29.20. In the Asian session, we first saw a bullish impulse up to $29.40. Silver did not have the strength to go above, and here we are again at the $29.00 level. If price pressure continues, a drop below to a new low is possible.

Potential lower targets are the $28.80 and $28.60 levels. For a bullish option, we need a price return above the $29.20 level. Thus, we return above the weekly open price to the positive side. It would be desirable for silver to stabilize there to create a position for a continuation to the bullish side. Potential higher targets are the $29.40 and $29.60 levels. At the $29.60 level, we get additional support in the EMA 50 moving average.