Gold and Silver in Correction: What to Expect After All-Time Highs

Precious metals markets experienced a significant turn on Monday afternoon during the U.S. session. After reaching recent record levels, both gold and silver faced substantial profit-taking, recording considerable daily losses that marked historic milestones in trading volume. Silver’s price today reflected this pressure with a drop of $6.87, closing at $71.895 per ounce, while February gold futures lost $203.4, settling at $4,349.3 per ounce.

Historic Highs and Market Reversal

During the previous overnight session, the market had set extraordinary milestones: March silver futures on COMEX reached an all-time high of $82.67 per ounce, while February gold hit $4,584.00 last Friday. These unprecedented levels attracted massive short-term position closures and the liquidation of weak bullish bets, resulting in a significant correction.

Technical Analysis: Warning Signs and Opportunities

From a technical perspective, today’s silver price action formed a very clear pattern: buyers lost momentum at high levels, causing a sharp retracement toward the close. On the daily chart, this constituted an evident bearish reversal pattern.

For February gold, the next critical levels are:

• Resistance: $4,400 (near) and $4,433 (succeeding)
• Support: $4,316 (today’s low) and $4,200 (key support)

Regarding March silver:

• Resistance: $72.50 (near) and $73.00 (succeeding)
• Support: $70.00 (close) and $67.50 (critical support)

Temporary Correction or Trend Change?

The assessment will depend on the movements in the coming days. If the market manages a strong rebound, today’s low could become just a correction point within the current bullish trend. However, if selling pressure intensifies on Tuesday or Wednesday, it could indicate that prices have reached a more significant temporary top.

External Market Context

The dollar showed a slight rebound, oil advanced trading around $59.25 per barrel, and the 10-year U.S. Treasury yield stood at 4.118%. These movements provide the context in which precious metals operate, with implications for the future direction of silver prices today and other commodities.

Outlook: The Next Two Days Will Be Decisive

The performance of operations in the coming days will be crucial to determine whether we are facing a healthy technical correction within a robust bullish trend, or if a temporary price ceiling has truly been reached. The ability to hold or recover key supports will offer clarity on medium-term prospects.