Gold and silver experience short-term pullback; precious metals rally stalls after the New Year

Spot gold and silver have experienced a significant correction in the short term. Gold has fallen over $20 from higher levels, currently at $4348.42 per ounce, with the daily gain narrowing to 0.7%; silver has retreated over $1 from its high, currently at $73.24 per ounce, with the intraday increase narrowing to 2.4%. This indicates that the early upward momentum of precious metals after the New Year is waning, and market sentiment is shifting.

Specific manifestations of the short-term correction

From the data, although both precious metals have corrected, silver’s intraday gain remains at 2.4%, showing stronger resistance to decline compared to gold. This difference often reflects market risk preferences for the two metals—silver, with its stronger industrial metal attributes, tends to perform more resiliently when economic expectations are stable.

Signals of market sentiment shift

Profit-taking after the New Year

During the year-end period, precious metals usually rise supported by safe-haven sentiment, but after 2026, the market has begun technical adjustments. Gold has fallen over $20 from higher levels, indicating that holders are selling off after short-term profits.

Testing of support levels

Currently, gold is around $4348, and silver around $73. These levels may serve as important short-term supports. If these prices continue to break below, further corrections could be triggered; if they hold steady here, a new upward foundation may form.

Future directions to watch

• Macroeconomic data releases: Federal Reserve policy signals, employment data, etc., will influence precious metals trends
• Geopolitical situation: The strength of safe-haven sentiment directly affects gold demand
• Dollar trend: An appreciating dollar usually suppresses dollar-denominated precious metals
• Technical support: Watch whether gold can hold at $4348 and silver at $73

Summary

The short-term correction in gold and silver reflects a natural market adjustment after the New Year. Although gains have narrowed, both metals still maintain positive returns, indicating underlying support remains. The key is to observe whether this correction is merely a technical adjustment or the beginning of a larger decline. In the short term, $4348 and $73 are critical support levels for precious metals.