Gold and Silver Prices: What’s Next After Monday’s Sell-Off?

Gold and silver prices took a hit on Monday, but the big question is what comes next. Gold managed to hold above its 50-day moving average, while silver broke below this key level with momentum indicators flashing bearish warnings. The upcoming US inflation data could be the next catalyst for direction in these precious metals.

Summary

Gold and silver had a strong start to 2025, defying expectations with a rally despite a stronger US dollar and rising Treasury yields. However, Monday’s sharp sell-off halted the bullish run, with both metals shedding over 1% for the session. The market remains uncertain as investors wait for key events like the US inflation report.

Gold: Buying Dips Favoured Despite Setback

Despite the setback, the technical picture for gold remains constructive. It is still in an uptrend and trading above the 50-day moving average. The RSI and MACD indicators are providing bullish signals, making buying dips a preferred strategy. Key levels to watch include $2676.50 and potential targets at $2698 and $2725.

Silver Slammed in Ugly Reversal

Silver’s price action has been more bearish, with a sharp pullback leading to a bearish engulfing candle on the daily chart. The price slid below the 200-day moving average, signaling potential downside risks. Key levels to watch include $29.50 and $28.75 as initial targets.

Overall, the outlook for gold and silver remains uncertain as investors await key economic data. It’s important to monitor technical levels and indicators to navigate these volatile markets effectively.

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