Gold and silver are facing a significant correction after reaching all-time highs.

2026-01-12 09:44:15

Volatility dominates the gold price today and in the precious metals market in general. On Monday, December 29, during the US session, both gold and silver experienced significant selling pressure, with daily declines among the most pronounced ever recorded in history. Profit-taking by traders in short-term futures contracts, combined with the liquidation of weak long positions, characterized the entire trading session.

Market Data and Session Performance

Silver futures with March delivery on the COMEX reached $82.67 per ounce in the previous overnight session, setting a new all-time high. Similarly, gold futures with February expiration had peaked at $4,584.00 per ounce on Friday.

During the December 29 session, the gold price today showed a significant decline: February futures retreated by $203.4, closing at $4,349.3 per ounce. Meanwhile, March silver futures recorded a loss of $6.87, settling at $71.895 per ounce. Concurrently, the dollar index showed a slight upward trend, while oil gained ground, trading around $59.25 per barrel. US 10-year Treasury yields stood at 4.118%.

Technical Outlook and Market Dynamics

From a technical perspective, today’s correction represents a natural adjustment within the overall upward movement, without compromising the underlying trend. Although gold and silver have suffered some short-term technical damage, the situation does not yet appear critical.

However, the evolution of prices over the next two trading days will be decisive. If a decisive downward pressure manifests on Tuesday or Wednesday, technical damage could worsen significantly, signaling a possible short-term local maximum. Conversely, if prices rebound strongly in the immediate subsequent days, the session low could become the new “minimum correction level” within the ongoing bullish trend.

Technical Levels and Targets for Traders

For February gold futures:

Bullish target: surpass the all-time high of $4,584.00 per ounce
Bearish target: penetrate the critical support of $4,200.00 per ounce
Primary resistance: $4,400.00 per ounce
Secondary resistance: $4,433.00 per ounce
Primary support: $4,316.00 per ounce (session low)
Secondary support: $4,300.00 per ounce

For March silver futures: Today’s price action has outlined a significant bearish setup, with buyers exhausted at the highs and prices closing near the daily lows. This pattern also generated a clear bearish reversal formation on the daily chart.

Bullish target: surpass the all-time high of $82.67 per ounce
Bearish target: break below the critical support of $67.50 per ounce
Primary resistance: $72.50 per ounce
Secondary resistance: $73.00 per ounce
Primary support: $70.00 per ounce
Secondary support: $69.00 per ounce

Market Considerations

The gold price today and the related market continue to operate through two distinct mechanisms of price determination: the spot market, where prices reflect immediate transactions, and the futures market, where prices incorporate scheduled deliveries at specific future dates. Due to the year-end seasonality and portfolio adjustments, the futures contract with the highest trading activity on the Chicago Mercantile Exchange is currently the December expiry.

The next trading phase will be crucial in determining whether today’s decline represents a simple tactical correction within a broader favorable trend, or the beginning of a more substantial revision of precious commodity prices.

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