Gold and Silver Price Pullback: A Buy-the-Dip Opportunity?

Gold consolidates break above $3,000
Silver pullback forms bullish wedge, hinting at upside potential
Momentum signals are mixed, but bullish bias remains intact for both metals

Summary

Both gold and silver have fallen over the past week, pulling back after a breakneck rally to start the year. While firmer risk appetite, rising bond yields, and a stronger U.S. dollar are popular narratives to explain the latest price movements, correlation analysis suggests other factors may be driving the unwind. With a quiet economic calendar and quarter-end fast approaching, price signals loom as good a guide as any for traders seeking fresh setups.

Gold Consolidates $3000 Break

Source: TradingView

Gold remains a buy-on-dips play despite the recent pullback, not only holding above the key $3,000 level but also the 50 and 200-day moving averages and the uptrend established in late December. For now, momentum indicators continue to generate bullish signals, although MACD is starting to look heavy, approaching the signal line from above. Nearer-term, the latest pullback has seen price coil up in what resembles a triangle pattern, with Tuesday shaping up as a potentially pivotal session as price sits at the intersection of the uptrend and downtrend. Having entered from below, a topside break screens as more likely if there’s to be a definitive move.

Support is found at $3,000, with $2,954.90 the next level after that. On the topside, a break of triangle resistance would open the door for a move back toward the record high of $3,057.50 set last week.

Silver Bias Remains to Buy Dips

Source: TradingView

Silver’s break above $33 earlier this month flamed out above $34, putting a retest of the October swing high on hold for now. While momentum indicators like RSI (14) and MACD are generating bearish signals—favouring near-term downside—the preference remains to buy dips, with silver trading above both its 50 and 200-day moving averages and uptrend support established late last year. The recent pullback also resembles a falling wedge pattern, suggesting traders should be alert to the risk of a topside break and resumption of the broader bullish trend.

Support is found at $32.73 and $31.84. Resistance may be encountered above $33.50 and $34, with a break above the March 18 high of $34.24 opening the path for a potential run toward the October 2024 highs.

-- Written by David Scutt

Follow David on Twitter @scutty

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.