Silver lags behind on technical charts, while gold and precious metals undergo corrections

Thursday in the US market saw a coordinated downward movement across precious metals markets. The February gold futures closed the session at 4467.2 dollars per ounce, recording a loss of 28.9 dollars. Meanwhile, the March silver contract touched 78.22 dollars per ounce, marking a decrease of 2.819 dollars. The dynamic was mainly driven by profit-taking by speculative traders, while holders of long positions adopted a more cautious stance in the face of strong technical resistance levels near historic highs.

Critical Technical Setup for Silver: Double Bearish Top in Sight

The daily trend of COMEX silver futures raises particular concern among analysts. The pattern forming in recent sessions suggests the possible formation of an inverted double top on the daily chart. If this bearish pattern is confirmed, it would have significant implications for the short term.

According to classical technical analysis principles, a downside break of the intermediate low between the two peaks would mark the definitive validation of this setup. For silver, this means that March contracts should fall below 69.255 dollars per ounce. A level where numerous pre-set stop-loss orders are likely concentrated, which could amplify the downward movement if reached.

The price evolution of silver for the rest of the week remains crucial: it will determine whether this technical figure materializes or if the market manages to consolidate at new support levels. The first resistance for upward pushes is at 79.00 dollars per ounce, followed by 80.00 dollars; immediate support is at 75.70 dollars per ounce, with the next level at 75.00 dollars.

Gold Amid Volatility and Strategic Central Bank Purchases

Despite the volatility seen in recent weeks, gold prices have demonstrated remarkable resilience. The February contract faces a key technical resistance at the historic maximum of 4584.00 dollars per ounce. Breaking this level would be the next target for bullish traders, while shorts aim to push contracts below the critical technical support of 4200.00 dollars per ounce.

In the short term, the first resistance for gold is at 4512.40 dollars per ounce (previous session high), followed by 4550.00 dollars per ounce. Immediate support was marked at today’s low of 4432.90 dollars per ounce, with the next crucial level at 4400.00 dollars per ounce.

Chinese People’s Bank Continues Gold Reserve Accumulation

A supportive element comes from the institutional front: the Chinese People’s Bank has increased its gold reserves for the fourteenth consecutive month, subscribing to the growing official demand despite prices reaching record levels. Last month, the central bank acquired 30,000 ounces of gold. Since the start of the purchase cycle in November 2024, the Chinese central bank has accumulated approximately 1.35 million ounces (equivalent to 42 tons of gold).

This accumulation strategy reflects global geopolitical concerns and a move toward value preservation instruments. In the context of currency devaluation operations and seeking safe havens relative to sovereign bond markets, gold has achieved its best annual performance since 1979.

Market Context and Next Critical Levels

In today’s financial markets, the US dollar index showed slight strengthening; oil declined, settling around 56.50 dollars per barrel; the yield on 10-year US Treasuries is around 4.15%.

Regarding technical prospects for March silver, the bullish target remains a close above the strong historical resistance at 82.67 dollars per ounce, while the bearish scenario points to consolidating below last week’s support at 69.225 dollars per ounce. The ongoing volatility of silver will likely continue to influence gold market scenarios in the short to medium term.