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Drop and new higher high 

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  • The price of gold is retreating from yesterday’s high of $ 1,858.
  • Yesterday, the price of silver managed to break above the fall of yesterday’s trend line and form a new higher high compared to Wednesday ($ 21.84).
  • Yields on US government bonds remain low for the third day in a row, despite the fact that the defense of the weekly bottom marked the previous day at 3,17%.

Gold chart analysis

The price of gold is retreating from yesterday’s high of $ 1,858. During this morning’s Asian trading session, the price dropped to $ 1840, where it found support. Later, a recovery to $ 1,850 was seen, but it didn’t last long, and the price started a new pullback. In the zone of around $ 1840, additional support can be provided by MA50 and MA200 moving averages. For the bullish option, we need a new positive consolidation and a return above $ 1850. After that, gold could climb to test the $ 1860 level. If she manages to take a break, the price will rise to this month’s resistance zone at $ 1870. For the bearish option, we need continued negative consolidation and a pullback below $ 1840. A break below would lower us to a larger support zone at $ 1830. Potential lower targets are $ 1820, $ 1810 and $ 1800 levels.

Gold chart analysis

Silver chart analysis

Yesterday, the price of silver managed to break above the fall of yesterday’s trend line and form a new higher high compared to Wednesday ($ 21.84). Last night’s maximum was 21.97. during today’s Asian and European sessions, the price consolidated in the range of $ 21.80-22.00. And now, it is possible to see a break above $ 22.00 and a continuation of the recovery towards the $ 22.25 level. For the bearish option, we need negative consolidation and a pullback below $ 21.50 to get back below the trend line. After that, prices would have to form a new lower low below $ 21.30 as a confirmation of bearish consolidation. Potential lower targets are $ 21.25 and $ 21.00 levels.

Silver chart analysis

Market overview

Yields on US government bonds remain low for the third day in a row, despite the fact that the defense of the weekly bottom marked the previous day at 3,17%. Reference yields on 10-year government bonds have fallen over the past two consecutive days to 3.216% as traders rush for bonds amid economic fears and higher interest rates. Poor U.S. data also supported the strength of the gold price the day before, as statistics eased pressure on the Fed after marking an aggressive rate hike.

Central banks in China and Japan are defending easy money policies despite rushing to tame inflation in the West. Larger funds in Asia, the largest buyer of gold, were supposed to favor gold buyers, but they could not. The reason could be related to economic fears due to Covid’s troubles and the Bank of Japan’s readiness to react.

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