Gold and silver: Gold is putting pressure on the $1840 level

• Today’s gold price continues last week’s bearish consolidation up to the $1839 level.
• On Friday, we saw a tremendous drop in the price of silver from the $23.60 level, which continued in the Asian session to the $21.60 level.

Gold chart analysis

Today’s gold price continues last week’s bearish consolidation up to the $1839 level. At that level, the price formed a new six-month low. In the last few hours, gold is trying to stop the fall and is trying to break above the $1845 level. If we were to succeed in that intention, the price could continue above $1850 and form a new bottom at that level, from which it would start a further recovery.

Potential higher targets are $1860 and $1670 levels. The EMA50 moving average is at the distant $1890 level. We need a negative consolidation and a new break below the $1840 support level for a bearish option. A drop below would form a new low and confirm the bearish scenario. Potential lower targets are $1830 and $1820 levels.

Silver chart analysis

On Friday, we saw a tremendous drop in the price of silver from the $23.60 level, which continued in the Asian session to the $21.60 level. Silver tried to start a recovery this morning, but it was stopped at the $21.90 level. Now we again see bearish consolidation and new pressure on the $21.60 previous low. A break below would confirm the formation of a new low, and the potential lower targets are $21.40 and $21.20 levels.

We need a positive consolidation and a price jump to the $22.00 level for a bullish option. Then we need to try to hold above there in order to form a new bottom there and start a further price recovery from there. Potential higher targets are $22.20 and $22.40 levels.

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