Jakarta, Pintu News – Gold and silver prices have suffered drastic declines in recent days, triggering panic in global markets and leaving analysts trying to understand the cause of this turmoil. After hitting record highs in October, gold has now reversed course and recorded significant weakness amid technical and macro pressures.
The situation was exacerbated by an even deeper plunge in silver prices, raising concerns about the potential for a larger market crisis. The situation has investors, including cryptocurrency market participants, wondering if this correction will be the start of greater pressure on risky assets.
The drop in gold prices is notable because it came shortly after gold hit a record high of $4,380 on October 17. After that moment, gold lost its momentum and fell about 7 percent from the peak.
The slight rebound on October 28 was only a brief respite before the downward trend resumed the following week. Market sentiment is now changing fast, and crypto and traditional asset traders alike are monitoring the new direction of gold’s movement.
Technically, gold’s daily chart shows a corrective pattern that has the potential to break to the downside, giving a strong signal that further weakness is possible. The Relative Strength Index (RSI) indicator is getting closer to bearish limits as it approaches the 50 level, which historically marks a trend change.
If this RSI drop is accompanied by a breakdown in the MACD indicator, the bearish trend will be fully confirmed. Some analysts warn that if the trend line breaks, gold prices could head towards the $3,750 area.
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In addition to technical factors, macro conditions also exacerbated the pressure on gold prices. Gold’s previous rally was considered to be overbought due to a huge surge in retail buying in the previous month. Long queues of gold buyers in various countries were a clear sign that the market had entered the euphoria zone. Ironically, such euphoric phases often mark the peak of a cycle before a major correction occurs.
Silver’s price movements further added pressure to gold when the white metal started chasing gold’s gains a few weeks ago. The surge in interest in silver prompted a rotation of investors from gold to other metals perceived to offer faster profit potential.
As a result, gold’s bullish momentum began to weaken and turned into a correction trend in no time. It was this combination of technical, psychological and macro factors that accelerated the global decline in gold’s value.
The silver chart shows an almost identical pattern to gold, but with a stronger bearish structure. The double top pattern formed on the daily chart signals a trend reversal that is often considered more aggressive.
Market wave analysts identified an A-B-C pattern that suggests a longer correction in silver metal. If this trend continues, a sharp drop could occur as soon as the price breaks the trend line.
When macro pressures increase, silver prices start to move more volatile than gold. Silver is often considered a more volatile asset than gold because its demand also comes from the industrial sector. This makes silver prices more sensitive to changes in the global economy. So, when gold weakens, silver tends to respond with a larger decline.
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Analysts are warning of a possible global market crash due to rising Japanese bond yields and the potential formation of an Artificial Intelligence bubble. The relationship between gold and the S&P 500 index this year shows a positive correlation, so both tend to move in the same direction.
However, in early 2025, when the stock market crashed, gold prices soared. This created new uncertainty: would gold return to being a hedge asset or would it fall with risky assets?
If macro conditions worsen, the direction in which gold moves can be a leading indicator for the overall market. In the context of cryptocurrency markets such as Bitcoin and Ethereum , changes in gold market behavior often influence global investor sentiment.
The uncertainty keeps investors on their toes as to whether gold will return to hedging or follow a deeper bearish trend. With technical and macro pressures reinforcing each other, continued downside risks remain a concern.
Gold and silver prices are in a major correction phase triggered by a combination of technical factors, macro pressures, and retail market behavior. The charts of both metals show strong bearish trends and raise questions about the risk of a broader market crisis. In this environment, investors in various asset classes, including cryptocurrencies, seek to read market direction more carefully. The movement of gold and silver in the next few weeks could be a bellwether for global sentiment.
Gold prices fell as bullish momentum weakened after reaching a record $4,380, following technical pressure and retail euphoria that marked the peak of the cycle.
Silver has higher volatility and is showing a bearish double top pattern as well as an A-B-C correction which reinforces downside risks.
Pressure came from rising Japanese bond yields and a potential AI bubble that added to global market uncertainty.
Changes in gold sentiment can affect the behavior of global investors, including cryptocurrency markets such as Bitcoin (BTC) and Ethereum (ETH).
As early as 2025, gold rose as the stock market fell, but this year it is positively correlated with the S&P 500, so the next direction is uncertain.
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*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
Reference:
- CCN. Gold and Silver Prices Sink as Panic Builds Across Global Markets. Accessed November 24, 2025
- Featured Image: Generated by AI
