Silver (XAG/USD) resumed its downtrend on Monday, trading at $63.60 and falling over 1.50% as it struggled to clear the neckline in the $64.10-$64.20 range, keeping the head-and-shoulders pattern alive and increasing the likelihood of further losses. The Relative Strength Index (RSI) for Silver is below its 50-neutral level, indicating sellers are in control. Key support levels are identified at $63.00, $62.59 (50-day SMA), $62.00, and potentially $60.00, with the head-and-shoulders measured objective at $55.00. To negate the bearish pattern, buyers would need to push Silver past the September 9 peak at $68.33, which could open the door to a test of $70.00 [1].
Gold (XAU/USD) also began the week under pressure, down 0.85% and reaching a one-month low of $4,253 before trading at $4,310. The decline was attributed to broad US Dollar strength, elevated US Treasury yields, and surging energy prices. Houthi attacks on Saudi Arabia’s East-West pipeline led to a preventive shutdown, reducing Oil production by around 7 million barrels per day. West Texas Intermediate (WTI) crude rose above $100, gaining over 1.50%. The US Dollar Index (DXY) increased by 0.32% to 99.41, and the 10-year US Treasury yield surpassed 5% for the first time since 2023. Prime Terminal data shows a 93% probability of a quarter-point rate hike by the Federal Reserve on Wednesday, with analysts expecting at least another increase by March 2027. Rising global bond yields are cited as a reason for downward pressure on bullion prices, despite Gold’s reputation as an inflation hedge [2].
Gold’s technical outlook suggests mixed signals: after testing the 50-day SMA at $4,271 and reclaiming $4,300, Gold could see further upside if it closes above the 100-day SMA of $4,351. Resistance levels are at $4,400, $4,450, $4,500, and the 200-day SMA at $4,539. On the downside, breaking below $4,300 could lead to further declines toward $4,282 and $4,271. The RSI remains bearish, indicating potential for further downside or consolidation [2].
Both articles highlight the impact of macroeconomic factors—particularly US Dollar strength, rising Treasury yields, and geopolitical events—on precious metals. Silver and Gold are facing technical and fundamental headwinds, with bearish momentum prevailing in the short term. Forward-looking statements from analysts suggest continued rate hikes and global central bank actions may keep pressure on these assets [1][2].
CONCLUSION
Silver and Gold are under significant downward pressure due to strong US Dollar, rising Treasury yields, and geopolitical disruptions in energy markets. Technical indicators and analyst expectations point to continued volatility and potential further losses unless key resistance levels are breached. The market takeaway is a bearish outlook for precious metals in the near term.