16 May chart overview for gold & silver
- For the first time in three months, the price of gold fell below 1,800 dollars.
- Weak Chinese data for April released over the weekend brought back fears about global growth.
Gold chart analysis
For the first time in three months, the price of gold fell below 1,800 dollars. Today’s minimum is 1785 dollars, formed at the beginning of the European session. After that, we see rapid consolidation and a new return above $ 1,800. The current high is $ 1807, and we are now tracking the progress of this consolidation. For a potential recovery and bullish option, we need a price jump above $ 1,810. After that, the next target is the price of 1820 dollars. The next big resistance zone is at the $ 1,850 level. Our potential resistance to that level is the upper line of the channel in which the price of gold is moving. For the bearish option, we need continued negative consolidation and a new price withdrawal below the $ 1,800 level. Our next bearish targets are $ 1,780, $ 1,770 support levels from February.
Silver chart analysis
Unlike the price of gold, the price of silver is stable today. We are in positive territory compared to Friday, and the progress is 1.00% compared to the previous trading day. At the beginning of the European session, the price of silver formed a new higher low, which is an indication that we could see the continuation of the recovery in the price of silver. Our next bullish targets are $ 21.50, $ 21.97. Our main target is the $ 22.47-22.66 zone, and our additional resistance is the upper trend line. For the bearish option, we need a price withdrawal below the previous low of $ 20.84. After that, we will see the formation of a new lower low, which is a sign for us to potentially further weaken the price of silver. Potential bearish targets are $ 20.50, $ 20.25 and $ 20.00 psychological level.
Weak Chinese data for April released over the weekend brought back fears about global growth, and it seemed to have little effect on global risk appetite, although it is not enough to support safe precious metals. This week, key upcoming risky events are remarks by NI Fed President and influential FOMC member John Williams later Monday ahead of the April U.S. retail report ahead of Fed President Jerome Powell’s comment on Tuesday. Fed policymakers have signalled that they have unanimously agreed to a quick tightening of policy in the coming quarters as the U.S. economy continues to suffer from high inflation.
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