Gold's volatility is heating up—will it break through the crucial 5,600 resistance or retreat?
GOLD UPDATE
Once again, yesterday we provided what proved to be an excellent level to re-enter long positions around 5,150, after which we witnessed another strong rally attempting to retest the highs. This scenario has now played out twice—first yesterday evening and again this morning.
As mentioned previously, we have not seen any daily close above 5,600, which remains our key resistance level. This area can still be used to attempt short positions, although we stress that this is very risky given current volatility.
Key levels to monitor today:
- Major resistance: 5,600
- Key support: 5,100{{{{{{{{{{{{{{{{unformatted_tag_list[12]}}}}}}}}}}}}}}}}
We are now entering an extremely volatile period, and it is essential to manage risk carefully and respect stop levels.
Looking ahead:
- We do expect some further upside next week
- However, negative equity market dynamics could temporarily weigh on gold
- We believe that February–March may present the best longer-term buying opportunity
From a broader perspective, gold remains bullish on the long term, and we do not foresee any crash. That said, a healthy retracement toward the 4,800–4,500 zone is certainly possible and would be constructive.
Please trade carefully and continue to use the indicated stops.
SILVER UPDATE
Looking at the Silver daily chart, once again we were able to identify the exact area where a daily bottom could form, around 106.00, where we advised looking to buy again. From that level, silver delivered a strong rally back toward the highs.
Today’s session is more challenging, as silver is once again testing an important support level at 107.60. As always, please remember that our levels are dynamic and can change daily.
Key levels to monitor:
- Immediate support: 107.60
- Next downside supports:{{{{{{{{{{{{{{{{unformatted_tag_list[24]}}}}}}}}}}}}}}}}
Silver currently shows slightly more downside risk than gold. If we see a daily close below 100.00, we will need to reassess the structure and identify new levels.
Resistance levels:
- First resistance: 119.00
- To restart a sustained rally, we will need a daily close above 120.00
Today’s close is therefore particularly important, and risk management remains essential.
