Silver sold off sharply for a second day after it pushed up towards $83 per ounce on Monday. Chart-wise, it looks as if silver may have formed a double top, and this may have persuaded many traders to cut their long side exposure and book profits.
The next significant support level comes in around $70, and a prolonged break below here could trigger further selling. Yet, silver is unpredictable, and it may still be too early to expect the top to be in. Volatility remains elevated, with recent price action underscoring how quickly momentum can turn.
Source: TN Trader
Gold pulled back from recent highs but has managed to hold above the $4,400 level for now. Price action still appears to be constructive from a bullish perspective, despite short-term softness. Gold has slipped for a second straight session as investors took profits following the earlier surge towards $4,500. Fundamental support remains intact, with expectations for additional Fed rate cuts this year appearing to limit upside in the US dollar.
Rising geopolitical tensions and a slight deterioration in global risk sentiment also provide some support. That said, gold bulls appear content to wait for clearer signals from upcoming US data, particularly Friday’s Non-Farm Payroll report.
