While gold trades near its all-time high of $2,790.17, warning signs are emerging. The RSI reading of 67 approaches overbought territory, and traders are reducing positions ahead of next week’s Federal Reserve meeting. Support at $2,693.40 becomes vital if profit-taking accelerates. This technical setup could spill over into silver markets, potentially amplifying existing selling pressure.
What’s Next for Silver Traders?
Silver faces immediate downside risk with multiple technical support levels under pressure. The 200-day moving average at $30.05 represents a critical threshold – a breakdown could trigger increased selling momentum and force long positions to liquidate.
However, potential upside exists above $30.98, with room to extend toward $31.81 if buying interest returns. Traders should monitor gold’s technical signals and upcoming Fed policy decisions for directional cues, while keeping Chinese trade developments in focus for industrial demand implications.
The convergence of technical weakness, shifting investment flows, and industrial demand concerns suggests increased volatility ahead.