On Wednesday, February 26, the precious metals sector experienced a collective surge, with silver once again leading gains due to its strong volatility and successfully reaching a new three-week high. OEXN observed that the bullish technical patterns displayed by gold and silver prices have notably strengthened recently. This shift in pattern is attracting a large number of short-term traders who rely on technical analysis back to the long side. Against a macro backdrop of continued high uncertainty in global geopolitical situations, the safe-haven attributes of gold and silver are further amplified, with capital inflows supporting the current premium performance.
In specific trading data, April gold futures rose by $37.40 to $5,214.50 for the day, while March silver futures climbed significantly by $2.954, holding firmly above $90.43. OEXN indicated that despite the strong price momentum, hawkish stances from Federal Reserve officials continue to impose some restraint on the rally. Boston Fed President Susan Collins recently noted that given improvements in the labor market and persistent inflation risks, interest rates are likely to remain elevated for an extended period. This view tilts monetary policy expectations towards tightening, creating marginal resistance for gold prices during their breakout attempts.
In the external environment, a slight pullback in the U.S. dollar index is counterbalanced by the 10-year U.S. Treasury yield holding near 4.05%, while crude oil prices edged down to $65.38 per barrel. Regarding subsequent price projections, OEXN believes the core target for gold futures bulls is to effectively break above the structural resistance level of $5,400.00, with this week's high of $5,269.40 serving as the first short-term test. Meanwhile, silver bulls are attempting to challenge the psychological resistance level of $100.00, with the overnight high of $91.18 acting as a barometer for near-term sentiment.
If prices fail to hold above this week's low of $5,109.50, bears may attempt to push gold down towards the technical support zone around $4,854.20. OEXN suggests that whether the current strength in the gold and silver markets can be sustained depends on whether safe-haven buying can offset the carrying cost pressure brought by the high-interest-rate environment. As market liquidity continues to shift, investors should closely monitor the defense of key support levels at $84.56 for silver and $5,100.00 for gold. OEXN will continue to provide in-depth technical indicator analysis to assist clients in accurately timing their positions within the fluctuating upward trend.