Gold and silver prices took a hit, with gold dropping from $5,400 to $4,700 and silver plummeting from $120 to $77. This correction was largely expected due to several factors:
- Overextension: Both metals had experienced a significant surge, making them due for a pullback.
- USD bounce and rates repricing: A stronger US dollar and hints of tighter monetary conditions weighed on precious metals.
- Crowded safe-haven trade: With many investors holding long positions, exits became narrow and fast.
Despite this correction, the overall trend for gold and silver remains bullish. Gold is holding above prior breakout zones, and silver is shaking out late longs before potentially resuming its upward trajectory.
Key levels to watch:
- Gold: $4,600-$4,500 support zone
- Silver: $70-$72 critical hold
The next catalyst for these metals will likely be the US Dollar Index (DXY) and real yields [7, 8, 12].$INIT
INIT
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ENSO
1.12
-4.02%
SYN
0.0743
-5.71%