Gold and Silver: Gold in a bullish rally this morning

• The price of gold rose to $2,669 last night, forming a new high
• During this morning’s Asian trading session, the price of silver was in a bullish consolidation

Gold chart analysis

The price of gold rose to $2,669 last night, forming a new high. After that, we fell into a sharp sideways consolidation. During this morning’s Asian trading session, the price gained a new bullish momentum and broke above the $2670 level. We continued to $2677, and a weekly high was formed. Currently, gold is at $2676 and is close to climbing to a new weekly high. Potential higher targets are $2680 and $2685 levels.

For a bearish option, the price of gold must first initiate a bearish consolidation back to the $2665 support zone. If the support does not hold and the bearish momentum increases, we expect to see a further pullback below the daily open level. Below, we will have the opportunity to test the weekly open level in order to stay positive. Potential lower targets are $2655 and $2650 levels.

Silver chart analysis

During this morning’s Asian trading session, the price of silver was in a bullish consolidation. In the EU session, the price continued to rise to a new weekly high of $31.80. We managed to break above the $31.60 resistance zone and above Friday’s high. Everything indicates that there are good chances to see further recovery on the bullish side. Potential higher targets are $32.00 and $32.20 levels.

For a bearish option, we expect the price of silver to pull back below $31.60 and test the weekly open level. This time, we need a break below and a price drop to the downside. Such a move will increase pressure on the price to continue its pullback down to the EMA 200 moving average at $31.20. Thus, we move to a new daily low and confirm the bearish momentum. Potential lower targets are $31.00 and $30.80 levels.