Gold held steady close to a four-month high

Gold and Silver: New Lower Low Again?

For the third day in a row, the price of gold is trying to make a break above $1680.
During the Asian trading session, the price of silver retreated below the $19.50 level.
Investors are refraining from any bets on the price of gold ahead of Fed and BOE interest rate hike decisions.

Gold chart analysis

For the third day in a row, the price of gold is trying to make a break above $1680, but without success. It is positive for us that we did not see the formation of a new lower low, and that would be a sign of further price pullback. We need a new positive consolidation and a move above the $1670 level first. We could then retest resistance at the $1680 level. A price breakout above would be of great benefit to us, as well as trying to hold above after that. With a new bullish impulse, the price could continue to rise. Potential higher targets are $1690 and $1700 levels. We need a negative consolidation and a drop to the $1660 support level for a bearish option. A price drop below would take us down to the September low of $1655. Potential lower targets are $1650 and $1640 levels.

Silver chart analysis

During the Asian trading session, the price of silver retreated below the $19.50 level. It failed to form a new higher high above $19.75, and a pullback followed. The price is now at the $19.25 level, and with additional support at the MA200 level, it could stop here. For a bullish option, we now need a new positive consolidation and a return above the $19.50 level. Potential higher targets are the $19.75 and $20.00 levels. We need negative consolidation and break prices below the $19.25 support level for a bearish option. Potential lower targets are the $19.00 and $18.75 previous low.

Market overview

Investors are refraining from any bets on the price of gold ahead of Fed and BOE interest rate hike decisions, which could have a significant impact on risk sentiment and the movement of the US dollar.

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