Never try to catch a falling knife—the proverb is both visceral and highly appropriate for precious metals just now. After Friday’s record declines, it makes sense to see where the market finds a price floor. On the charts, it seems to suggest that silver should have found support at the current level at $85, while gold may need to decline a further $368 to find chart support around $4,500.
So, does silver prop gold up? Or does gold fall, in which case silver might be looking at $78–$80 on Monday (both declining a further 8% or so)? Hard to call, but pushed to decide, I would favour the latter. So, $4,500 and $78 respectively should, in theory, be good entry points—but with the options markets driving things, literally anything is possible.
Despite all the hyperbole beinge expended after Friday's price correction ... it is worth noting it has only taken gold back to levels last seen on jan 22nd ... a little over a week ago ... and silver back to levels seen on Jan 12th ... that's a roundabout way of saying fundamentally nothing has changed ... the bull run is alive and well ... but hopefully just a little less exuberant.
Source: https://www.metalsdaily.com/archive/gold-silver-what-will-monday-bring-/379550
