A Gold & Silver Technical Update

The technical picture for gold, silver, and their miners has improved markedly following today’s surge.

I wanted to quickly publish a precious metals update because gold, silver, and mining stocks had a stellar day, significantly improving their technical setups. Gold jumped 2.8% while silver surged 5.38%, driven by a weaker U.S. dollar and escalating trade tensions with China. Over the weekend, President Trump accused China of violating a recent trade agreement and announced that U.S. tariffs on steel and aluminum would increase this week. Let’s take a look at the charts.

First, let’s take a look at gold via COMEX futures, which I follow closely due to its tendency to trade in clean $100 increments—creating strong support and resistance around round numbers like $3,000, $3,100, $3,200, and so on. Today’s surge pushed gold to a close just below the $3,400 level, which is an encouraging sign. However, I’d prefer to see a decisive close above $3,400 to confirm that further gains are likely on the horizon.

As I noted in a recent update, gold remains in a healthy consolidation range between $3,200 and $3,500, pausing to catch its breath after strong gains earlier this spring. This sideways action may continue a bit longer, but a decisive breakout above $3,500 is the key signal I’m watching. That would likely mark the start of gold’s next major leg higher—potentially targeting $4,000 next, given its significance as a major psychological milestone that tends to act like a magnet for price.

I also want to point out that gold had been forming a bull flag pattern over the past couple of months, and today’s surge triggered a breakout—an encouraging development that deserves attention: