Precious metals traders brace to hold gold at $4,000 as silver breach of $60 seen as ‘catastrophic’ by FX Empire’s Lewis

Gold prices are showing volatility as traders prepare to test the $4,000 per ounce support level. FX Empire analyst Christopher Lewis pointed out that the negative correlation between interest rates and gold is starting to break down, with the metal likely to receive psychological backing near this mark, though the longer-term trend could allow a return to $3,500. A break below would open the door to another $500 decline.

Silver faces a similar situation, with traders defending the key $60 per ounce support. Lewis warned that losing this level would be catastrophic and open the way to $50, yet demand continues to outpace supply, creating upside potential under favorable conditions.

As of Thursday, spot gold trades at $4,089.45 per ounce (+0.43%), while silver stands at $64.147 (+1.13%).