Bottom Line
Higher oil prices, inflation worries and a stronger U.S. dollar are keeping gold and silver under pressure. A break above $4,200 will push the price to $4,350, but gold needs to hold above $3,950 to avoid another drop to $3,800.
Silver is also consolidating between $55 and $64. A break of these levels will likely define the next move in the silver market. A break above $72 may push silver to $89. On the other hand, a break below $55 will likely open the door for a final drop to $45. The next move in both metals will depend on the developments in the US-Iran conflict, oil prices, CPI data and Fed policy signals.