Concerned about the overnight decline in gold and silver?

I thought I might have customers, so I posted an early gold trading alert today. This article is based on this.

I’ll skip the details on gold, silver, mining stocks and copper, but I will tell you about the markets that likely made moves in the PM. You may also find this valuable.

So, why was there such a massive selloff in the precious metals sector in the markets overnight?

Possibly due to the decline in stock index futures.

The breakdown was small, but… the whole world is watching it. Everyone at least somewhat familiar with technical analysis knows that when this support (the lowest level at the end of 2025) is actually broken, a major decline is likely.

I have little doubt it’s very close, but the question is whether the stock will bottom out without any additional upside.

Based on the following:

• 6,500 provides support and the stock moves back up after breaking it, thus generating a buy signal.

• The previous low was broken very marginally,

• Stocks last surged when we had a similar price pattern in 2007-2008.

• The decline in the USD index is not over yet

I think the stock could invalidate this breakout and move higher – perhaps for the last time.

The situation for German stocks (DAX index) supports the rebound from a technical point of view. Stocks have just reached their rising, long-term support line and since the decline was sharp, there is potential for a rebound.

This is probably the beginning of the 2008-again scenario I’ve been warning about for months – perhaps in an even more brutal way.

The USD index reached higher levels today, however, it is still early in terms of reaction time to what used to be a Fed interest rate decision a few days after major short-term fluctuations. My previous comments remain updated: :

The vertical, dashed lines indicate the days of the Fed’s interest rate decision. There are two things that stand out:

1. After the rate decision, the USD index starts rising rapidly. Sometimes up, sometimes down, but those reactive moves are the same in terms of timing. They usually take between 5 and 9 trading days, with 5-6 being the most frequent and 3 days being local outliers, depending on the lack of clarity on what moves should be measured.
2. We usually see reversals after a rates decision – especially when the USD is after a big short-term move. We saw it in late July – early August 2025 and in late October – early November.

Based on point 2, it is likely that we will see a short-term decline here.

Based on point 1, it is likely that we will see this going on for 1-2 weeks.

There is something else on top of that. That is, the USD index reverses its direction at or right after the end of the month. The end of the month is 1.5 weeks away, which fits perfectly with the post-Fed-rate hike trend.

This means that the precious metals market has about 1.5 weeks to go bullish. Miners can initially grow faster than metals and reach the top even earlier – this is how they perform in general.

At this point you might be thinking that miners are bound to fall today given the overnight decline in gold and silver, and while that may be true, it is also true that as I type this, gold and silver are already moving back up, and it could be the case that they both end today’s session in the green, giving mining stocks a boost.

In short, these are the points I made Beneficial Raktabeej Articles Stay updated. The full version of today’s analysis includes my direct analysis of gold, silver, mining stocks, and copper, and includes not only short-term price targets for all of them, but also a discussion of potential performance over the next half of the year. My Gold Trading Alerts are currently available to you at the very preferred price – Check it out, you’ll love it, and the timing couldn’t be better.

Thank you.

sincerely,
Przemyslaw K. Radomski, CFA