Ireland, China fail to push gold and silver through key supports, gold hits fresh 1-week high

Gold and silver bounced off short-term support levels on Tuesday, with the yellow metal recouping the entire losses of the day to hit a fresh one-week high.

Gold and silver had on Tuesday fallen off the multi-day highs set in the previous session in line with other commodities that tracked growing pessimism about the health of Europe and continued fears that China will soon take more steps to combat inflation in the country.

However, key technical supports make the way downward for the metals bumpy, probably aided by the long-term bullishness for the precious metal while many also expect the US dollar to weaken further.

As of 7:40 GMT, gold was at $1,362.9, moving off the $1358 support and after hitting $1,369.8, its highest since November 15. On the way up, $1,375 seems to be the next target for the yellow metal. If the metal resumes the downtrend and falls below the $1,358 level, $1,353 could prove next strong support, which is 38.2 percent Fibonacci retracement from its November 16 low. See image - 1

Silver was at $27.51, bouncing off the $27.45 support and well below previous day's 12-day high of $27.9. If the metal resumes the downtrend and falls below the $27.45 level, $27.2 could be the next key support, which is 23.6 percent Fibonacci retracement from its November 16 low. See image - 2