Gold and Silver: Gold remains stable in the $2420 zone

• During this morning’s Asian trading session, the price of gold once again received support at the $2405 level. 
• On Monday, we saw the price of silver drop to $27.29, a new July low. 

Gold chart analysis

During this morning’s Asian trading session, the price of gold once again received support at the $2405 level. After this, we saw bullish impulses that went up to the $2425 level. The price now holds around $2420, and everything indicates that we will see a new bullish impulse above a new weekly high. Potential higher targets are the $2430 and $2440 levels. Last week’s gold price high was at $2432.

For a bearish option, we need a negative consolidation and pullback to the $2410 level. There, we will test the daily open price. By going below to a new low, we will confirm the transition to the bearish side and increase the pressure on the price of gold. After that, we expect to test the $2400 level, where the EMA 200 moving average awaits us. Potential lower targets are $2390 and $2380 levels.

Silver chart analysis

On Monday, we saw the price of silver drop to $27.29, a new July low. After that, the price started a bullish consolidation that continues today. Yesterday, we saw a move above the $28.00 level, where we received support from the EMA 50 moving average. In the continuation, silver gained new momentum and rose today up to the $28.75 level. In this zone, we are looking at an attempt to hold there and gain support from the EMA 200 moving average.

With his support, we expect stronger bullish consolidation and conquest of higher levels. Potential higher targets are the $28.80 and $29.00 levels. For a bearish option, we need a pullback of the silver price down to the $28.40 level. There, we will test the daily open price. With the momentum below, we move to the bearish side, which will negatively affect the price movement. Potential lower targets are the $28.20 and $28.00 levels.