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Gold and Silver: Three-day bearish trend

Gold and Silver: Three-day bearish trend

During Asian trading, the price of gold slipped below the limits of the price range in which it moved during the previous seven days.
The price of silver continues its three-day bearish trend, forming a new lower low this morning at $ 20.67.
The hawkish statements of the president of the New York Fed, John Williams, and Mary Daly from San Francisco, withdrew bets for a faster tightening of the policy of the American central bank.

Gold chart analysis

During Asian trading, the price of gold slipped below the limits of the price range in which it moved during the previous seven days. Investing in the dollar and selling off everything except oil and petroleum products did not bypass gold either. Rising inflation, which is pushing the level of interest rates higher with efforts to increase faster, is the main point of stumbling in the price of gold.

The price of gold is trading around $ 1816 per fine ounce, which represents a price drop of 0.18% since the beginning of trading last night. Today’s minimum price was $ 1811. Bearish pressure is still very much present due to the strong dollar. We need continued negative consolidation and $ 1810 level testing for the bearish option. And the price could very easily slip to the $ 1800 level. For the bullish option, we need a positive consolidation above $ 1820. Our next target is the $ 1830 level. A break above this level would increase bullish optimism so that the price of gold could continue toward the $ 1840 resistance zone.

Silver chart analysis

The price of silver continues its three-day bearish trend, forming a new lower low this morning at $ 20.67. The price is now consolidating at the $ 20.75 level, and due to increased bearish pressure, we can expect a drop to the $ 20.50 support zone. We need positive consolidation and a return to the $ 21.00 level for the bullish option. If the price stays above that level, then we could expect a further recovery, first to $ 21.25 and then to $ 21.50.

Market overview

The hawkish statements of the president of the New York Fed, John Williams, and Mary Daly from San Francisco, withdrew bets for a faster tightening of the policy of the American central bank. This helped the US dollar build on the strong movement of the previous day, which in turn undermined the demand for gold.

Market participants, however, remain divided over the need for a more aggressive Fed rate hike amid growing fears of a recession. This, together with new drop-in yields on US Treasury bonds and the prevailing cautious mood in the market, could offer some support for the price of gold.

The post Gold and Silver: Three-day bearish trend appeared first on FinanceBrokerage.

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