Here's What You Need to Know After Today's Gold & Silver Pullback

Just days before the high-stakes U.S. presidential election, asset prices—from stocks to commodities—dipped amid heightened market volatility.

In any strong bull market, like the one we’re seeing in gold and silver, regular pullbacks are to be expected—some even sharp, intended to shake out “weak hands” or retail investors prone to panic. Seasoned investors and traders, however, stay composed, following their game plan without letting emotions drive their decisions. In this update, I’ll show you where gold and silver stand following today’s pullback.

After a steady, nearly drama-free rise, gold pulled back by 1.56% today. On Tuesday, it broke out of a bull flag pattern but has since returned to the breakout level. This pullback appears to be a simple backtest, keeping the breakout intact. I monitor $100 increments in COMEX gold futures, as these levels frequently act as support and resistance. On Wednesday and Thursday, COMEX gold futures faced resistance near $2,800, similar to its behavior around the $2,700 level a few weeks prior. Currently, prices are oscillating between $2,700 and $2,800, with a decisive close above $2,800 needed to confirm the next bullish signal.

As I've explained recently, silver remains in a bull flag pattern that is still valid despite today’s 3.3% decline. On Friday, October 18th, silver achieved a critical technical breakout, which remains intact as long as it holds above the key $32-$33 support zone. Following strong breakouts, it's common for an asset to backtest the breakout level. A rebound from this support zone and a breakout from the bull flag would signal the start of the next leg in the rally.