Following a period of significant volatility, gold and are now primarily influenced by technical indicators, as the key drivers from the previous week appear less effective in the current market environment.
Gold futures, after opening this week at $5,056.51, and day’s high at $5,065.76 and testing the day’s low at $4,991, are trading at $5,041 are, indicating the impact of a steep decline in gold’s net speculative positions, which have come to 165.6K from 205.4K last week, while 244.8K last-to-last week.
Undoubtedly, gold and silver futures remained turbulent in January 2026 as it started with the arrest and extradition of Venezuelan President Maduro, an attempt to hold control over Greenland with the threat of supplemental tariffs on some NATO countries, and the buildup of military forces around Iran, which seemed to calm down on Feb.6, 2026, meeting in Oman.
Silver future, after opening this week with a gap up at $79.598, tested the day’s high at $81.825 and day’s low at $78.770, are trading at $81.578, indicating the influence of a steep decline in silver’s net speculative net positions, which is at 25.9K, after remaining at nearby levels since Jan.17, 2026, when the silver’s net speculative positions were at 32.1K, when the silver futures were attempting to find a breakout at $96.386 levels.
On the other hand, the spot gold and silver (XAU/XAG) ratio, after starting the day with a gap-down opening at 63.05, tested the high at 63.59 and the day’s low at 61.10, is trying to hold the immediate support at 61.27, ensuring a reversal in today’s session.
Undoubtedly, having an inverse correlation with gold and silver futures could generate fresh selling sprees; continue to influence the movements of the gold and silver futures, as President Donald Trump seems to favor diplomatic steps to influence Iran’s missile power, along with a uranium use limit, by imposing extra tariffs on the trading partners of Iran.
Technical Levels to watch
Gold
In a daily chart, are showing extensive selling pressure, as despite opening at $5, 07.51, it tested the day’s high at $5,65.76 and day’s low at $4,991, looks ready to reverse as trading much below the immediate resistance at $5,124.40 while the immediate support is at the 9 EMA ($4,958).
Undoubtedly, if the gold futures break down below this immediate support in today’s session, the next target will be at the 20 EMA ($4,869).
Silver
In a daily chart, silver futures are indicating extensive indecisiveness, as despite a gap-up opening, futures are under heavy selling pressure due to the formation of a bearish crossover with the 9 EMA piercing the 20 EMA, which has fallen below the 20 EMA.
Undoubtedly, if the futures find a breakdown below the immediate support at $79.703 in today’s session could test the next immediate support at the 50 EMA ($75) where a breakdown could push the futures to test the next support at the 100 EMA ($63.326) this week.
In conclusion, I anticipate that the gold and silver futures, after locking the upside on last Friday despite the weekly closing with a gain of 1.85, after testing the week’s low at $4,423 and weekly high at $5,113.90, gold futures have capped the upside at $5,113, where a breakdown below the immediate support at the 9 EMA ($4,935) could confirm the continuity of a bearish pressure.
On the other hand, silver futures, after testing the weekly high at $92.015 and the week’s low at $63.900, despite a weekly closing at $76.895 with a gain of mere 0.24%, as the upside seems to be capped at $105.
This week could experience a sell-on-rally approach, as the sell-on-rally approach currently prevails in both the gold and silver futures.
Disclaimer: Readers are advised to take any position in gold and silver at their own risk, as this analysis is based only on observations.
