Gold and silver prices fell sharply on Thursday after breaching key technical sell targets, with gold dropping more than $144 an ounce and silver falling over $3.30 per troy ounce.
The declines came after both metals approached critical resistance levels, triggering automated selling programs and profit-taking among traders. Gold, which had been consolidating near $2,400 an ounce in recent sessions, broke below the $2,300 mark in early trading, while silver slid to its lowest level since mid-May.
Analysts attributed the selloff to a combination of technical factors and broader market sentiment, with some citing the breach of key moving averages as a catalyst for the downturn. "The move below $2,300 in gold and $30 in silver was a clear signal for short-term traders to exit long positions," said a metals analyst at a major brokerage firm.
The Federal Reserve’s recent hawkish stance on interest rates has also weighed on non-yielding assets like gold, as investors priced in the likelihood of prolonged higher borrowing costs. Silver, which has industrial demand exposure, faced additional pressure from concerns over global economic growth.
Technical indicators suggest further downside risk if support levels at $2,250 for gold and $28 for silver are breached. However, some analysts noted that the sharp declines may have created oversold conditions, potentially limiting further losses in the near term.
Investors will now watch closely for signs of stabilization or additional selling pressure, particularly as the U.S. dollar remains firm against major currencies, a headwind for dollar-denominated commodities.
The selloff in precious metals follows a period of elevated volatility, with gold and silver having rallied significantly in the first half of the year on safe-haven demand and central bank purchases.
