What to Watch Next
Gold and silver face a key test with the US CPI report on October 14. The softer inflation could ease the expectations of a rate hike by the Fed and support both metals. Stronger inflation data could lift the dollar and Treasury yields and limit the recovery in precious metals. Gold needs a confirmed break above $4,250 to open the way towards $4,330.
On the other hand, silver must clear $62.60 before testing the resistance zone of $64-$65. In my view, easing inflation pressures and confirmed breaks above resistance would strengthen the rebound in gold and silver. But another increase in oil prices could keep inflation concerns alive and limit further gains in both metals.