Analysis of and futures across various timeframes indicates both metals are experiencing sustained bearish pressure. Elevated oil prices have prompted investors to seek liquidity, driven by concerns that an extended Middle East conflict may disrupt energy supplies and negatively impact global economic growth.
On Monday, the and are down roughly 1% in Asia, while the and even the safe-haven Swiss franc similarly tumbled, as the proved king.
Iran on Monday named Mojtaba Khamenei to succeed his father, Ali Khamenei, as Supreme Leader, signaling that hardliners remain firmly in charge in Tehran a week into its conflict with the United States and Israel.
I observed that the violent reaction stems from the markets seeing no obvious off-ramp in the escalating Middle East conflict, now a high-stakes standoff where neither side appears willing to blink first.
Undoubtedly, in such a grim situation, gold and silver are losing safe-haven demand as investors prefer cash, with these metals losing their war premium even amid conflict.
The gold futures were maintaining an uptrend till Mar.2, 2026, amid growing demand for gold and silver as their safe-haven potential, while the gold futures tested a peak at $5645, but a follow-up sell-off from the peak levels to test the lows at $4,421.95 within three trading sessions sent shockwaves among the gold bugs.
Undoubtedly, this steep fall was only the resultant reaction of the investors to book profits as the U.S. and Iran headed to resolve this conflict through diplomatic means, as Oman brokered their indirect meetings, raising hopes as a step toward maintaining peace in the Middle East.
But Israeli Prime Minister Netanyahu compelled U.S. President Donald Trump to make the deal extremely tough for Iran, resulting in the escalation of war between the U.S. and Israel with Iran.
Undoubtedly, the situation has turned extremely grim, resulting in the fading shine of gold and silver.
Now, I find that both precious metals are just trying to defend their key support levels, where a breakdown could accelerate the selling spree, while the surging bearish pressure at the current levels could make the slide extremely steep.
Technical Levels to Watch
GOLD
In a weekly chart, gold futures are trying to defend the immediate support at $5,127.79 despite an extreme surge in bearish pressure. I find that a breakdown below this could push the gold futures to test the next support at $5,005.64, while the next significant support will be at the 9 EMA ($4,971).
Undoubtedly, a breakdown below the 9 EMA could push the futures to test the next significant support at the 20 EMA ($4,649).
In a daily chart, gold futures are trying to hold the immediate support at the 20 EMA ($5,098) while facing stiff resistance at the 9 EMA ($5,145), indicating extremely bearish pressure at the current levels.
Undoubtedly, gold futures have tested the day’s low at $5,021.59 in today’s session, which could encourage gold bears to push the futures below this level, where the immediate support will be at $5,005.63, where a breakdown could push the futures to test the next significant support at the 50 EMA ($4,889.64) this week.
SILVER
In a weekly chart, after a steep fall last week, have tested a low at $78.141 despite a bullish move in the prior two weeks, formed a ‘Dark Cloud’ last week, indicating a steep fall awaits here as on the first day of this week, silver futures, after opening the day at $84.423, tested the day’s high at $85.045, and the day’s low at $79.698, indicating a breakdown below the day’s low in today’s session could push the futures to test the next support at the 20 EMA ($73.588) this week.
Inversely, a breakout above the immediate resistance at $88.076 could provide an opportunity to take a short position.
In a daily chart, silver futures are trying to defend the immediate support at the 50 EMA ($79.752) while facing stiff resistance at the 20 EMA ($84.405), as the 9 EMA is trying to pierce the 20 EMA, which could form a ‘Bearish Crossover’, which could extend the selling pressure at the current levels.
SPOT GOLD-SILVER RATIO
In a daily chart, the spot gold-silver ratio is sustaining at 60.74, despite extensive bearish pressure, and could move upward to test the immediate resistance of 65.39, where a breakout could push it inside a bullish territory, resulting in extensive selling in 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.
