Gold surged to an all-time high of $2,942.78, raising concerns that it retreated before it set back, raising the rally overheated. RSI remains in the acquired territory, and the price gap between Spot Gold and the 50-day moving average suggests that an even more downside is possible.
Silver often reflects gold movement, and deeper corrections of gold could accelerate sales in silver. Silver could have a hard time retaining its current support level if it saw a bear inversion pattern where gold was confirmed, especially if technical traders follow gold's lead and cut their positions.
Powell's testimony and tariff uncertainty is heavy in the market
The Federal Reserve policy outlook remains a key driver for precious metals. Powell's Congressional testimony is closely analyzed on signals regarding inflation and rate expectations. Signs of long-term stability could strengthen dollars and silver in pressure, as inflation is still above the Fed's 2% target.
Meanwhile, Trump's tariffs on 25% steel and aluminum imports have rekindled concerns about rising costs. If Powell acknowledges tariff inflation risk, traders could shift expectations to a more takis-based Fed, which could have a negative impact on silver and gold. However, if Powell hits a careful tone and emphasizes patience, Silver can find new support.
