Gold and Silver, consolidate or continue to fall?

Precious metals have taken another step lower, extending what’s already been one of the sharpest pullbacks we’ve seen in recent months. The obvious question now isn’t whether prices have fallen — they clearly have — but whether there’s still air left to come out, or whether bullion is starting to find its footing.

Gold and silver are beginning to approach levels where longer-term buyers typically start paying closer attention. While short-term momentum has been against the metals, the broader macro picture hasn’t exactly turned friendly for risk assets. A period of consolidation wouldn’t be surprising here, particularly if upcoming economic data continues to weaken and real yields ease back.

Closer to home, the Reserve Bank of Australia surprised markets with a rate rise — delivered with an optimism that probably didn’t land quite as warmly in Australian households. For millions of mortgage holders, further tightening is enough to force a pause and reassess repayments. The RBA continues to walk a tightrope between keeping inflation contained and avoiding unnecessary stress on an already stretched housing market.

In the US, the labour market is starting to show clearer signs of fatigue. December job openings fell by more than half a million in the latest government data, a meaningful shift that suggests demand for workers is cooling more quickly than expected. This isn’t a collapse by any means, but it does challenge the narrative of a relentlessly strong employment backdrop.

That softer picture was reinforced by the latest release from US ADP, which came in around 50% below forecasts. Private-sector hiring remains positive, but the pace is clearly slowing, adding weight to the argument that restrictive monetary policy is finally biting.

Taken together, weakening employment data, a cautious consumer, and central banks nearing the limits of tightening are all themes bullion investors will be watching closely. While volatility may persist in the short term, the broader economic signals are becoming harder to ignore.

Always do your own research before making any investment decisions.

Enjoy today’s charts.

Gold Futures Technical Analysis  

Technical indicators for Gold Futures suggest a STRONG BUY on both monthly and weekly analyses.  

Technical Indicators – Monthly Projections  

Gold daily chart, with 50MDA

Silver daily chart, with 50MDA

US500, with 50MDA

ASX200, with 50MDA