Gold and Silver Analysis: Key Resistance Levels and Market Volatility

What to Know

• Gold remains highly volatile, with central bank demand supporting prices despite sharp pullbacks
• The $5,000 level is a key psychological and technical resistance for gold
• Short-term dips in gold may attract buyers, but position sizing is critical due to extreme volatility
• Silver is testing the $90 level, facing mixed signals from supply-demand dynamics
• Elevated volatility in silver suggests caution, as sharp intraday moves remain a risk

The backdrop of course is that we have seen quite a bit of volatility in both of these markets, especially on Friday when accounts were wiped out quite frankly.

If you were over-leveraged last Friday, you probably aren’t here watching this video because you probably no longer have a trading account. That being said, it is interesting to see that we are in the midst of trying to recover and this violent move is certainly going to capture a lot of headlines.

Gold is different than silver in the fact that central banks are doing everything they can to collect gold to hedge geopolitical issues and debt issues. It is a very dangerous market to deal with, but I suspect more likely than not short-term pullbacks will continue to be thought of as potential buying opportunities in a market that has been very noisy.

Gold Technical Analysis

The gold market is approaching the crucial $5,000 level. I suspect that if we break above $5,000 on a daily close, that probably will send more buyers into the market.

In the meantime, I think short-term dips offer buying opportunities on bounces, but I would not be looking at huge positions here because, quite frankly, we’ve seen what could happen. The $4,400 level seems to be on the floor in the market at the moment and, unfortunately, as I record this, that’s about $453 south of where we are. That’s the type of volatility we’re dealing with and the only way to fight back against it is to either not participate or trade small and have huge stop losses.

Silver Technical Analysis

Silver is currently testing the $90 level. It’ll be interesting to see if it can break above there. From a supply/demand issue, it should, but there are serious problems out there because you’re starting to hear stories of bullion dealers having almost no buyers and everybody’s coming in to try to sell their silver.

There does come a point where it becomes too expensive and that’s part of what we saw last Friday. There’s also the fact that the 50-day EMA has been held, so that is a bullish sign. We’ll just have to wait and see, but I think at this point in time silver you have to be extraordinarily careful with. What you want is positive but boring. The 14% move so far during the session is not boring. That’s something that could invite more volatility.

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