Gold and Silver Drop Again – May 10
- The price of gold fell by $ 35 Yesterday, -1.85%.
- The price of silver lost 3.3% of its value yesterday, falling from $ 22.39 to $ 21.65.
- Falling yields on U.S. bonds destabilized the dollar and helped gold regain positive strength today.
Gold chart analysis
The price of gold fell by $ 35 Yesterday, -1.85%. Very quickly, at the beginning of the Asian session, she found support at $ 1,850.62 and climbed to $ 1,865.25. There is still pressure on the price of gold due to the strong dollar that resists above 103.00 levels. If this negative consolidation, which started last Thursday, continues, we could see a further lowering of the price first to the $ 1,844 price, a low from February 15. We need a positive consolidation above the upper trend line and a $ 1,865 price tag for the bullish option. Our upper targets are the first $ 1875 level, $ 1885, $ 1892 and $ 1909 level, last week’s high.
Chart:
Silver chart analysis
The price of silver lost 3.3% of its value yesterday, falling from $ 22.39 to $ 21.65. Today’s picture is that the price recovered to $ 22.08 during the Asian session, and as we entered the European session, the price weakened and returned to the starting daily position at $ 21.75. We can say that there is more pressure on the lower support zone, and if it does not provide us with adequate support, we will see a new low this week. Our potential lower target is $ 21.50, then the $ 21.25 level. If the price of natural gas finds support here and forms a bottom, then there is a chance that we will see a recovery in the price. Higher targets us respectively $ 22.12, $ 22.40, the zone around $ 22.50, $ 23.00 and at the end the previous high at $ 23.34 price.
Chart:
Market overview
Falling yields on U.S. bonds destabilized the dollar and helped gold regain positive strength today.
Optimistic bets on the Fed’s interest rate hike and the impulse to risk put pressure on any further gains for the precious metals.
The market’s focus will remain riveted to the release of data on consumer inflation in the U.S., which is expected on Wednesday.
The softer tone around the yield on U.S. Treasury bonds kept the bulls of the U.S. dollar on the defensive, which, in turn, was considered a key factor offering some support to commodities.
Concerns about declining global growth and a possible recession have further supported gold as a haven for investors. Markets seem convinced that the Fed will have to take more drastic measures to fight high inflation.
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