Gold and Silver Price is falling Again Rapidly
Gold continues its bearish trend from May 5, losing 4% of its value (-75 dollars).
The price of silver follows the bearish trend of the price of gold, forming a new minimum this week at $ 20.55.
The main driver of the weakness of gold this week was the strength of the US dollar.
Gold chart analysis
Gold continues its bearish trend from May 5, losing 4% of its value (-75 dollars). We are currently testing this morning’s low again at $ 1,810. The break below is on the doorstep, and we should see the price of gold at the $ 1,800 level soon. Our potential bearish targets are $ 1800, $ 1790, $ 1780 and so on. If the price consolidates and forms a bottom here, then we follow the price recovery. We need new positive consolidation and rising prices above $ 1,831 first. Our next target is the upper line of this falling channel in the zone around 1839 dollars. A break above would boost bullish optimism. Potential bullish targets are $ 1839, $ 1850, $ 1870, $ 1885 and so on.
Silver chart analysis
The price of silver follows the bearish trend of the price of gold, forming a new minimum this week at $ 20.55. The picture is very pessimistic because we are already in the bearish trend for the seventh day after the price reached the $ 23.34 level. We will probably see the price of silver next week as it tests the $ 20.00 level. For the bullish option, we need a new positive consolidation and return above the $ 21.00 -21 $ zone. After that, we could see a potential price recovery up to the $ 21.50 level where the MA200 moving average awaits us. Our next bullish targets are $ 21.50, $ 21.65, $ 21.97, $ 22.47 and so on.
The main driver of the weakness of gold this week was the strength of the US dollar. The dollar index is on the way to closing the week close to decades-long highs at the top of 104.00.
Stock markets strengthened worldwide on Friday as comments by the Fed president on Thursday not to consider raising the 75-point rate in June and July calmed nerves. Cryptos also regained some of its recent losses, which caused a sense of risk.
Asian markets are closed with gains. European markets are traded in positive territory. Futures on Wall Street are also traded in the green zone. The dollar index is not far from the fresh 20-year high reached on Thursday. However, bond yields have increased in all countries and geographical regions. Crude oil prices have risen, but a strong dollar and a decline in OPEC’s oil demand forecast have limited gains. Gold fell amid rising dollars. Cryptocurrencies have recovered.