## Gold and Silver in Decline: Double Top Shoulder of Silver Sparks Alert for Bulls

The Chinese People's Bank has once again supported the gold market, purchasing an additional 30,000 ounces last month. During the fourteen consecutive months of acquisitions, the institution has accumulated approximately 1.35 million ounces (equivalent to 42 tons), highlighting that official demand remains robust despite prices reaching historic levels. Yet, on Wednesday during the US afternoon session, both gold and silver experienced a setback.

**Short-term pressures hinder the rally**

February gold futures paused at $4,467.2 per ounce with a loss of $28.9, while March silver contracts reached $78.22 per ounce, dropping $2.819. The contraction was mainly triggered by profit-taking by short-term speculative traders, who decided to cash in on gains made in previous weeks. At the same time, strong technical barriers at historic highs prompted long traders to adopt a more cautious strategy, waiting for clearer developments before making new purchases.

**Gold chart shows signs of weakness for silver**

From a technical perspective, the daily chart of March COMEX futures shows a concerning pattern: this week's price action, characterized by today's sharp decline, may be outlining an inverted double top figure. If the price falls below the low between the two peaks ($69,255 per ounce), the bearish pattern would be confirmed according to traditional analysis. At that point, many pre-set stop-loss orders could trigger, amplifying downward pressure.

The movement of the white metal could act as a catalyst for the yellow metal. Currently, the first resistance for February gold is at yesterday's high of $4,512.40, followed by $4,550.00, while immediate support is set at today's low of $4,432.90, with a second threshold at $4,400.00. For silver, the main technical resistance remains the all-time high of $82.67 per ounce, with primary support at $75.70.

**Macroeconomic context still favors precious metals**

Despite recent volatility, gold has recorded its best year since 1979, driven by central bank purchases, persistent geopolitical tensions, and defensive moves by investors. They are gradually shifting from sovereign bonds to value-preserving instruments. On the external markets front, the US dollar has slightly appreciated, oil trades at $56.50 per barrel, while the 10-year Treasury stands around 4.15%.

In the short term, long traders' next target remains a solid close above the strong resistance at the contractual high of $4,584.00, while shorts aim for below the strong support at $4,200.00. The gold chart movement in the coming days will be crucial in determining the price direction for the rest of the week.