Gold, silver and crude oil all oscillated around key technical levels on Monday. Market focus is fixed on this week’s FOMC meeting of the Federal Reserve and the volatility it may trigger. Gold rebounded from the $4250 support level after hitting a new low, yet its short-term structure has weakened; silver remains under pressure near $64; crude oil has given back part of its gains after hitting a fresh high, with near-term corrective risks.
Spot gold plunged to its lowest level in more than one month on Monday. Surging oil prices and strong US inflation data from last week have reinforced expectations of a Fed rate hike this week, weighing on non-interest-bearing gold.
Spot gold closed down $50.28 or 1.2% at $4298.43 per ounce on Monday, having touched a one-month low of $4253 intraday.
Gold holds the $4250 level
Gold previously dipped to make a lower low before finding buying support near the $4250.00 support level. Even so, with the rising trend line broken, the short-term technical picture still favors bears.
Traders are now closely watching whether gold will break decisively below the key support of $4250.00 to confirm a further decline toward the $4120–$4160 target zone. Conversely, a rapid rebound higher may open the door to new higher swing highs.
On the charts, markets remain cautious about the interest rate statement following this week’s FOMC meeting, and potential volatility may amplify gold’s reaction to key support and resistance levels. Key levels to monitor now include: supports at $4250 and $4000; resistances at $4350, $4500, $4546 and $4700.
Silver keeps an eye on the $64 threshold
Silver is also under pressure, trading near the critical support of $64.00. Like gold, market participants are waiting for clearer directional signals before considering new trading positions. If sellers push price to break cleanly below $64.00, silver may keep falling toward the lower support zone of $59.20 to $60.86.
If silver can hold current levels, there remains technical room for it to enter a consolidation phase. Key levels to watch: supports at $64.00, $54.00 and $50.00; resistances at $70.00, $80.00, $83.91, $85.00, $100.00 and $120.00.
Crude oil pulls back after rallying
Crude oil extended its prior bullish momentum to hit fresh highs before retreating from the peak and hovering near its opening level at this stage. In the short run, oil may first undergo a bearish correction to retest $95.00, or even revisit the previously broken swing high near $93.48.
Nevertheless, analysts believe a deeper pullback is not inevitable, as underlying buying interest stays strong and prices may continue their upward trajectory without a notable retreat. Major support levels for crude oil are $95.00, $90.00, $85.00 and $80.00, while resistance sits at $100.00.