Gold and silver: The price of gold is close to the $1900

• Yesterday we saw a sharp drop in the price of gold from $1960 to $1911.
• Yesterday was a very turbulent day for the silver price.

Gold analysis chart

Yesterday we saw a sharp drop in the price of gold from $1960 to $1911. During the Asian session, the price of gold managed to stay around that level. We saw a minor recovery up to $1918, which did not last long as a new drop to the $1910 level followed. The reason for yesterday’s fall in gold price is the interest rate increase by the Fed, ECB, and BoE.

Based on that, we could expect the price to continue falling until the next support at the $1900 level. Potential lower targets are $1890 and $1880 levels. We need positive consolidation and a return to the zone around the $1930 level for a bullish option. That would put us back above the critical point. Potential higher targets are the $1940 and $1950 levels.

Silver chart analysis

Yesterday was a very turbulent day for the silver price. First, we climbed to the $24.63 level, which was soon followed by a price drop to $23.45. The increase in interest rates by central banks also affected the movement of the price of silver. During the Asian trading session, the price hovered around the $23.50 level.

For now, we manage to maintain ourselves at that level. We need a negative consolidation and a break below the $23.40 level for a bearish option. Then we could expect a further decline to some lower support. Potential lower targets are the $23.20 and $23.00 levels. We need a positive consolidation and a jump above the $23.60 level for a bullish option. Thus we would be above the trend line, and with a new bullish impulse, we would start a further recovery. Potential higher targets are $23.80 and $24.00 levels.

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