What Is Next for Gold and Silver After the Breakdown?
Gold and silver have been under pressure for the short term after breaking through key support levels last week. Gold may trend down to the $4,200 to $4,250 area first, which then could lead to a more significant drop to $4,000.
Silver also broke to the downside below $70, where $60 to $64 are the next significant support levels. But the long term picture for both metals remains constructive.
The big picture remains supported by China’s continued gold buying, bullish speculative positioning and the broader hard asset theme. If gold holds $4,000 and silver holds the $50 zone, any correction can form the foundation for the next big move.
Read more: Fed Rate Fears Drive Gold Breakdown