Precious metals remained under pressure at the start of the new trading week, with both and extending their recent declines during the US morning session. The market continues to experience elevated volatility as investors weigh expectations for monetary policy against ongoing geopolitical developments. As highlighted in my previous market articles, I had anticipated continued weakness in both gold and silver, and those downside targets have now been achieved. The key question for traders is whether the recent sell off has further room to run or whether it is time to book profits and prepare for a short term recovery.
Market Performance
During the US morning session:
- traded near $4074.22 per ounce
- traded around $56.735 range
- Price action remains highly volatile, with sharp intraday swings creating opportunities for active traders.
Why Have Precious Metals Been Under Pressure?
The recent decline has largely been driven by continued uncertainty surrounding U.S. monetary policy and investor positioning. Market participants remain cautious as they evaluate the outlook for Federal Reserve interest rates, Treasury yields, and the US dollar. Although precious metals have faced selling pressure, traders are also carefully monitoring geopolitical developments, which continue to provide an important source of underlying support for safe-haven assets.
Geopolitical Tensions Continue to Support Gold
Developments in the Middle East remain a major focus for global financial markets. According to recent reports, Iran launched ballistic missiles toward US military positions in the region, with US Central Command stating that the missiles were successfully intercepted. Meanwhile, President Donald Trump indicated that renewed negotiations with Iran regarding the Strait of Hormuz and Tehran’s nuclear program were expected to begin this week. While no specific timeline for a final agreement was provided, diplomatic discussions have renewed hopes that tensions could eventually ease. As long as geopolitical uncertainty remains elevated, safe haven demand could continue to provide support for gold and silver despite broader macroeconomic headwinds.
Trading Outlook – Gold and Silver Futures
After the recent decline and the successful achievement of our previously published downside targets, I believe the market may be approaching an area where short covering and profit booking could emerge. Selling pressure often begins to ease after extended declines as traders lock in profits from existing short positions. If this develops, both gold and silver could witness a technical rebound during today’s session. While broader market sentiment remains cautious, the current risk reward profile appears more favorable for traders looking for a short term recovery rather than initiating fresh aggressive short positions at current levels.
Buy Gold December Futures
Buy Zone: $4065 – 4075 per ounce
Stop Loss: As per your risk management
Targets: $4120 $4130 $4140
Buy Silver September Futures
Buy Zone: $56.550 – 56.750 range
Stop Loss: As per your risk management
Targets: $58.000 $58.500 $58.900
Conclusion
Gold and silver remain under pressure after extending losses at the beginning of the week, but the market has now reached levels where profit booking from short sellers could trigger a technical recovery. Continued geopolitical uncertainty in the Middle East may also provide additional support for precious metals if risk sentiment deteriorates. Traders who participated in the recent decline may consider evaluating profit-taking opportunities, while short term traders should closely monitor price action for signs of stabilization before considering fresh long positions. As always, disciplined risk management remains essential in the current high volatility environment.
This market commentary reflects a trading opinion, not a guarantee of future market performance. Precious metals markets are highly volatile, and traders should conduct their own analysis and use appropriate risk management before entering any trade.
