Gold and Silver Price Collapses But Can the Larger Uptrend Resume?
After a massive rally Gold fell $210 below $3,000 while Silver collapsed $18%, but found some support yesterday, which was a positive signal
Live GOLD Chart
After a massive rally Gold fell $210 below $3,000 while Silver collapsed $18%, but found some support yesterday, which was a positive signal.
Rising geopolitical tensions, economic uncertainty, and expanding global trade barriers have driven a wave of renewed interest in traditional safe-haven assets—most notably, gold. The precious metal has been in strong demand throughout 2024, rising steadily as investors sought protection from volatile equities and weakening currencies.
Gold Chart Daily – Surges to Record High Amid Global Turmoil
After breaking above the psychologically important $3,000 level last month, gold (XAU/USD) reached a new all-time high of $3,167 per ounce early Thursday, highlighting its continued strength as a hedge against macroeconomic and geopolitical shocks. Since late 2022, gold has surged nearly 200%, reflecting both inflationary fears and a broader shift toward asset safety in a time of market fragility.
Tariffs Trigger Reversal, But Buyers Step Back In
However, late last week brought a sharp reversal. GOLD fell more than $200 from its highs and closed below the $3,000 mark for the first time since March 17. The downturn was sparked by the announcement of sweeping new trade tariffs on Wednesday, which triggered a wave of global risk-off sentiment. On Friday alone, gold dropped over 3% as global equities plunged and recession fears intensified.
Despite this pullback, the correction found support near the 50-week simple moving average (SMA), which helped stabilize prices. Later in the same session, gold rebounded by $30—an early sign that buyers may still be active and the dip could prove temporary. Given the likelihood of continued trade disruptions and fragile financial markets, demand for gold as a safe haven is expected to persist.
Silver Sees Volatility But Long-Term Fundamentals Remain Supportive
Silver has followed a similar, though slightly more volatile, trajectory. It gained more than $5 since the beginning of the year but faced strong resistance around the $34.50 level. Last week, silver (XAG/USD) reversed sharply, shedding around 15% as bullish momentum faded. The 50-day moving average, which has offered key technical support during previous corrections, again came into play as prices rebounded from a low of $28.05.
SILVER rallied to reclaim the $30 handle early today, gaining roughly 3% in the process. However, the 50 SMA, which previously acted as support, has now flipped into resistance, capping the rally near $30.80. This level will likely serve as a key test for bulls in the near term.
Industrial Demand Adds Long-Term Support for Silver
In addition to its role as a safe-haven asset, silver is benefiting from structural tailwinds tied to growing industrial demand—particularly from sectors like solar energy, electronics, and defense manufacturing. Institutional investors have also reportedly paused large-scale selling of silver due to tightening supply conditions. As a result, the metal’s medium- to long-term outlook remains bullish, even amid short-term volatility.
Conclusion: The Larger trend Remains Bullish
While both gold and silver have faced technical setbacks after hitting multi-year highs, the broader market context remains supportive of further gains. With ongoing trade tensions, economic instability, and tightening supply dynamics—especially for silver—investor appetite for these metals is likely to remain strong. Short-term fluctuations aside, the path of least resistance for precious metals continues to lean upward.
Gold Live Chart
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