Gold and Silver Price Forecast: China Buying Supports Floor

Author: Arslan Ali

Published: June 9, 2026

Key Highlights

• The US-Iran ceasefire has been stable for over nine weeks, allowing tanker traffic to resume through the Strait of Hormuz.
• Gold prices fell to $4,330 after breaking below key support levels, indicating strong bearish momentum.
• Silver prices dropped to $68.32, facing aggressive selling pressure after failing to hold above the 50-period moving average.
• China's central bank has consistently purchased gold for over 17 months, providing long-term support for gold prices.

Market Overview

On June 9, 2026, gold and silver prices showed a lack of direction as markets reacted to higher-than-expected U.S. inflation data from April. The Consumer Price Index (CPI) report indicated both headline and core inflation figures above expectations, which has reduced the likelihood of near-term interest rate cuts by the Federal Reserve. This scenario has buoyed real yields and the U.S. dollar, limiting the upside potential for both precious metals.

Gold Price Analysis

Gold is currently trading at $4,330, having broken below the blue descending channel and the red 50-period moving average. The price action has been characterized by bearish engulfing candles, indicating continued selling pressure. The Relative Strength Index (RSI) remains below 45, suggesting a strong loss of momentum without oversold conditions. The volume profile indicates that the $4,460 to $4,500 range is dominated by sellers, and the overall structure remains bearish.

Trade Idea: Sell Gold Spot at $4,330, targeting $4,239, with a stop-loss at $4,400.

Silver Price Analysis

Silver is trading at $68.32, having faced rejection at the $72.70 level near the 50-period moving average. The price has formed a series of lower lows, confirming a bearish trend. The RSI has dropped below 40, indicating a loss of momentum. The volume profile shows significant selling pressure in the $72 to $74 range, and the overall structure remains bearish.

Trade Idea: Sell Silver Spot at $68.32, targeting $66.50, with a stop-loss at $70.00.

Conclusion

Both gold and silver are currently under pressure due to a combination of factors including inflation data, central bank actions, and geopolitical stability. The upcoming Federal Reserve meeting and economic data releases will likely continue to influence the direction of these precious metals.