Gold and Silver Forecast: Breakdown Risk Ahead of Fed Minutes
By Muhammad Umair | Updated: Oct 07, 2026
Market Overview
Gold and silver prices are experiencing downward pressure as traders await the release of the Federal Reserve's meeting minutes. Currently, gold is trading near $4,150 per ounce, while silver is around $60.90. The recent correction in the US dollar has provided some support for these metals, but caution prevails in the market.
Key Price Levels
- Support Level for Gold: $4,100
- Resistance Level for Gold: $4,300
- Support Level for Silver: $60
- Resistance Level for Silver: $64
Market Sentiment
The market currently anticipates a 20.5% chance of a rate hike in October, with a higher probability for December. The decline in expectations for an immediate rate hike has provided some support for gold and silver, but potential future rate increases could dampen demand.
Technical Analysis
Gold Analysis
The daily chart indicates that gold is consolidating at the edge of a bearish triangle. A break below $4,100 could lead to a swift decline towards the $4,000 mark. Conversely, a recovery above $4,300 is necessary to initiate a rebound towards the 200-day Simple Moving Average (SMA) at $4,500.
Silver Analysis
Silver's daily chart shows a negative price structure below $72. A failure to break above $68 in August suggests further downside risk. A break below $60 could push prices towards $55, while a recovery above $64 is needed to target $72.
What to Watch
Traders are advised to closely monitor the Fed minutes for insights into future rate hikes. A strong US dollar may exert additional pressure on gold and silver, while rising oil prices could reignite inflation concerns. The key support level for gold remains at $4,100, and for silver at $60.