Gold, Silver Outlook: Haven Sentiment, Reversal Patterns on Hold

Following the heated headlines on gold and silver — driving long lines outside jewelry stores and fueling intense media coverage and momentum — a contrarian signal has emerged. This signal was confirmed by classic reversal patterns, triggering the 300+ point selloff we witnessed this week.

Gold Outlook:
On the 4-hour chart, gold prices have formed a double-top pattern near the $4,380 peak, pulling back toward $4,000 support — a level that now defines two potential scenarios:

A sustained move below $4,000 — the double-top target and key support — could trigger another 300-point decline, with the next support zones around $3,920 and $3,780.

As price action remains above the target but below the neckline, the bearish bias persists. A clean break above $4,200–$4,240 would be required to reignite upside momentum toward $4,300–$4,380, after which new record highs could extend toward $4,900–$5,000.

Silver Outlook

On the 4-hour chart, silver has traced a head and shoulders reversal pattern, targeting the $47.30 level. If prices close back above the neckline at $50.80, gains may resume toward record levels, with key targets at $52.40, $54.40, and $56.60. Holding below $47 could extend losses toward $44.40 and $42.90, aligning with the trendline connecting consecutive higher highs between January 2023 and October 2024, setting up a potential bullish rebound.

- Razan Hilal, CMT