Gold and Silver: Bullish Trend and New Higher High

During the Asian trading session, the price of gold was in a bullish trend up to the $1730 level.
The price of silver today formed a new higher high at the $18.87 level.
The US dollar came under heavy selling pressure on Friday and continued to retreat from its highest level in two decades, a key factor fueling demand for gold.

Gold chart analysis

During the Asian trading session, the price of gold was in a bullish trend up to the $1730 level. After which, we see a pullback to the $1720 level. The price of gold could form a new higher low here and start a new bullish impulse. First, we need further positive consolidation and a break above the resistance at the $1730 level. The potential higher target is $1740 and $1750 level. We need a continuation of the negative consolidation and a drop to the $1710 level for a bearish option. The price of gold would then fall below the MA200 moving average, which would put additional pressure on the price. Potential lower target is $1720 and $1710 September low.

Silver chart analysis

The price of silver today formed a new higher high at the $18.87 level, after which we see a pullback to the $18.50 support level. If we do not find support here now, the price could fall to the $18.00 level. The MA200 moving average could provide additional support at that level. If we don’t manage to stay above, the price will fall, and the potential lower targets are $17.75 and $17.50. We need a new positive consolidation and a return to the previous high for a bullish option. After that, we would be able to test the $19.00 level. A break above the price would open up space for us towards the $19.25 and $19.50 levels.

Market Overview

The US dollar came under heavy selling pressure on Friday and continued to retreat from its highest level in two decades, a key factor fueling demand for gold. It is expected that the US central bank will tighten its monetary policy at a faster pace in order to tame inflation, and this was confirmed again on Thursday by Fed President Jerome Powell. Powell reiterated the Fed’s commitment to reducing inflation and that it will do so until they bring inflation down to the planned level.

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