Gold and Silver: Will Key Levels Hold?

Summary

Gold prices have fallen nearly 2.25%, or almost $100, breaking below the critical daily 200 moving average, a significant technical indicator. The first major support level for gold is identified at the pivot low of $4,100, just about $65 away. A break below this level would signal a potential long-term buy opportunity in the $3,500 to $3,600 range, supported by a downward sloping parallel and a long-term trend line dating back to 2023. Silver is also collapsing, nearing a critical support zone around $64. A daily close below this level could send silver down to $54, with a larger buy zone anticipated between $50 and $47. This lower zone aligns with historical highs in 1980 and 2011, suggesting a potential retracement to the "scene of the crime" where previous breakouts occurred.