Global markets witnessed a sharp decline on Tuesday, with both gold and silver prices falling alongside equities as traders turned cautious ahead of the much-anticipated Jackson Hole Symposium.
Gold Price Under Pressure
Gold futures began the day steady in Asian and European trading but lost momentum as soon as U.S. markets opened. The yellow metal broke below the key support at $3,375, triggering heavy selling pressure. Within hours, gold futures touched $3,358.90, marking an intraday loss of nearly 0.73%.
This drop pushed gold to its lowest level since the start of August, raising concerns of a potential shift in its consolidation trend. From a technical standpoint, gold futures slipped under their 100-day Simple Moving Average (SMA), signaling possible weakness ahead. However, spot gold remains just above its own 100-day SMA, with a critical support zone around $3,309 being closely monitored by traders.
If this level breaks, analysts warn that additional technical selling could follow, deepening the downside momentum for bullion.
Silver Follows Gold Lower
Silver (XAG/USD) mirrored gold’s decline, falling by 1.83% to close near $37.33 per ounce. This drop placed the metal just below its 50-day SMA for the first time since late May — a technically significant development for momentum traders.
If the bearish trend continues, silver may test supports near $36.00, with the 100-day SMA around $35.50 acting as a stronger backstop. On the upside, recovery attempts face resistance at $37.75 and $38.70.
Equity Markets Reflect Risk-Off Mood
The weakness wasn’t limited to precious metals. U.S. equities, particularly technology stocks, came under heavy selling pressure. The Nasdaq Composite Index plunged 1.32%, closing at its lowest point since August 7. Notably, Tuesday’s single-session decline outpaced the cumulative losses of the previous four trading days, reflecting intensifying bearish sentiment.
Markets Eye Jackson Hole and Fed Signals
The synchronized decline across both precious metals and equities highlights growing risk-off sentiment among investors. Much of this caution stems from uncertainty over what the U.S. Federal Reserve may signal at the Jackson Hole Symposium, which begins tomorrow.
Traders are especially concerned about future monetary policy guidance and the possibility of delayed rate cuts. Any hawkish tone from Fed Chair Jerome Powell could further strengthen the U.S. dollar, adding downward pressure on gold and silver prices.
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