Gold and silver: gold is looking for support at $2340 level

• The price of gold dropped to the $2322 level yesterday, forming a new two-week low.
• During this morning’s Asian trading session, the price of silver fell below the $31.00 level.

Gold chart analysis

The price of gold dropped to the $2322 level yesterday, forming a new two-week low. The previous low was formed on Friday at the $2325 level. Then, we saw the price stabilize and initiate a recovery to the $2350 level. During this morning’s Asian trading session, gold moved in the $2340-$2350 range. We notice a slight bearish pressure that could bring us down to the weekly open price of $2334.

New pressure on that level could initiate a bearish impulse and form a new low. Potential lower targets are $2325 and $2320 levels. We need a positive consolidation and a price jump to the $2355 level for a bullish option. There, we test the EMA200 moving average. A break above the gold price paves the way for a bigger recovery. Potential higher targets are $2360 and $2365 levels.

Silver chart analysis

During this morning’s Asian trading session, the price of silver fell below the $31.00 level. A three-day low was formed at the $30.80 level. After that, the price managed to recover to the $31.00 level and is now testing the EMA200 moving average here. In the last few hours, we have had a slight bullish consolidation and could see an impulse above the daily open price of $31.16.

If the price of silver succeeds in doing so, it would be well positioned to initiate a positive consolidation and recovery to the bullish side. Potential higher targets are $31.20 and $31.40 levels. Additional resistance in the $31.40 zone is the EMA50 moving average. On the bearish side, we need a negative consolidation and a new pullback down to the $30.80 level. By returning to that zone, we are back under bearish pressure. Potential lower targets are $30.60 and $30.40 levels.

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