Gold and silver: Gold on the way to the $2050 level

Gold chart analysis

The price of gold is back to shine above the $2000 level. The Fed’s decision to leave interest rates at zero on Wednesday evening pushed the price of gold above the $2000 level all the way to $2047 last night. After that, the price made a minor pullback to $2030, and during the Asian trading session, it consolidated around the $2035 level. Now, we are very close to moving above $2040 and try all the way to the $2050 level.

With a break above, it would be much easier for us because we would get rid of the bearish pressure. Potential higher targets are the $2055 and $2060 levels. For a bearish option, we need a negative consolidation and pullback to the support of the $2030 level. A drop below that would signal that we are slowly losing strength and will see a test of lower levels. Potential targets are $2020 and $2015 levels. EMA50 is an additional support for the price in the zone around the 2015$ level.

Silver chart analysis

This week’s low silver price was on Wednesday at $22.49. The price sleeps to get support at that level and, from there, initiates a bullish consolidation that forms a high at the $24.20 level. We are currently in that zone, and at any moment, we expect to see a break above and the formation of a new price high. Potential higher targets are $24.40 and $24.60 levels.

We need a negative consolidation and pullback to the $23.80 level for a bearish option. There, we would test the support of the EMA50 moving average. A break below would introduce uncertainty into the bullish scenario, and we would see a further pullback to the bearish side. Potential lower targets are $23.60 and $23.40 levels.

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