Gold and Silver: The price of gold climbs above $1980

This week, we saw a continuation of the bullish consolidation in the price of gold. The price of silver is once again climbing above the $23.00 level.

Gold chart analysis

This week, we saw a continuation of the bullish consolidation in the price of gold. We started the week at the $1925 level, and now we see the formation of a new high at the $1985 level. The bullish momentum is still very strong, and we could expect to see a continuation to the $1990 level. Above, we would be tempted to go ahead and test the $2000 level. The previous time, the price of gold was at the $2000 level in May of this year.

We need a negative consolidation and a price pullback below the $1970 level for a bearish option. We had a previous consolidation in that zone before we continued up. A break below could intensify bearish pressure and lower the price of gold. Potential lower targets are $1960 and $1950 levels.

Silver chart analysis

The price of silver is once again climbing above the $23.00 level. We were above that level on Wednesday, after which the price fell to the $22.60 support level. Yesterday, we managed to consolidate at that level and form a bullish consolidation from there. Today’s low price was at $22.85, and that could be a sign for us to climb slowly, and we could see a break above the $23.20 level. Potential higher targets are $23.40 and $23.60 levels.

We need a negative consolidation and pullback to the previous support at the $22.60 level for a bearish option. Additional support at this level could be found in the EMA50 moving average. A price break below would clearly indicate that bearish pressure is increasing, and silver prices will fall. Potential lower targets are $22.40 and $22.20 levels.

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