After reaching new all-time highs earlier in the week, gold prices faced a pullback on Thursday as traders cashed in on their substantial gains. As of 6:40 PM ET, December gold futures dropped by $17.30, or 0.48%, and saw further losses of $4.20 in extended-hours trading, bringing the price to $3,598.40 per ounce.
Despite the retreat, gold’s overall performance continues to reflect remarkable strength over a broader time period. The yellow metal is up by 2.34% for the week and has gained an impressive 36.24% year-to-date, signaling sustained investor demand for the asset.
Technical Outlook: Bullish Trend Remains Intact
From a technical standpoint, Thursday’s drop came close to key support levels, yet it did not break through them, indicating that bullish sentiment remains firmly in place. The day’s low reached just shy of the 23.6% Fibonacci retracement level at $3,572.40, which was derived from gold’s recent rally. The quick rebound from this level further supports the view that buyers are maintaining control and that gold is still in a strong uptrend.
Silver Joins Gold in Rally: Surpasses $42 for the First Time Since 2011
Silver mirrored gold’s impressive performance, surpassing $42 per ounce during Thursday’s session for the first time since 2011. This breakthrough represents a significant psychological and technical milestone for silver, marking the end of a prolonged period of resistance.
Much like gold, silver exhibited resilience amid broader market profit-taking, experiencing only a modest pullback. At $41.27, silver found solid support just above its own 23.6% Fibonacci retracement level at $41.03, reinforcing the technical strength driving the precious metals sector.
Outlook: Precious Metals Rally Likely to Continue
The strength of both gold and silver, combined with their ability to hold key support levels during profit-taking phases, suggests that the current rally in precious metals could have further to go. While short-term volatility is likely as traders continue to take profits from the impressive gains seen this year, the underlying bullish structure of the precious metals market remains intact. With global economic uncertainties and sustained demand for safe-haven assets, both gold and silver seem poised for further upside in the medium to long term
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