- During the Asian trading session, the price of gold fell to a new September low at the $1627.5 level.
- During the Asian trading session, the price of silver fell to the $18.50 support level.
- The USD index is giving up its Asian gains to a new two-decade high amid a recovery in European currencies, and such a scenario is helping the price of gold take a breather.
Gold chart analysis
During the Asian trading session, the price of gold fell to a new September low at the $1627.5 level. A bullish impulse soon followed, and the price of gold rose to $1,650. Then there was another decline to $1640, where we are now trying to find new support. To continue the bullish option, we need to break above $1650 and try to hold above that level. With the continuation of positive consolidation, the price should continue to recover. Potential higher targets are $1660 and $1670 levels. A negative consolidation below the $1640 level is needed for a bearish option. After that, we would retest the support at the $1630 level. If we fail to maintain at that level, it is expected that we will see a continuation of the bearish trend. Potential lower targets are $1620, $1610 and $1600 psychological level.
Silver chart analysis
During the Asian trading session, the price of silver fell to the $18.50 support level. It managed to hold above, and we see a minor recovery to the $18.75 level. Additional support is found in the MA20 moving average. To continue the bullish option, we need to move above $18.75, and with positive consolidation, the price would be at the $19.00 resistance level. Additional resistance in that zone is in the MA50 moving average. A breakout of the silver price above these resistances and staying above them would greatly benefit further bullish recovery. Potential higher targets are $19.25 and $19.50 levels. We need a negative consolidation and a price drop below the $18.50 level for a bearish option.
Market Overview
The USD index is giving up its Asian gains to a new two-decade high amid a recovery in European currencies, and such a scenario is helping the price of gold take a breather. The Fed announced another big rate hike last week and signaled it would likely take more aggressive hikes at its upcoming meetings to curb inflation. The hawkish stance adopted by the Fed continues to support higher US Treasury yields.
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