Gold Surges Towards $4,800 as Silver Hits Key Level

The price of gold continues to rise, aiming for $4,800 as it approaches the key resistance area between $4,800 and $5,000. This upward trajectory is a result of gold's breakout above its 200-day SMA on the daily chart.

According to analysts, if gold breaks above $5,000, it could lead to a surge towards $5,600. However, a failure to surpass $4,800 may trigger a correction and send prices down to $4,500.

The silver price is also showing strength as it approaches the key level of $72. The geopolitical tensions in the Strait of Hormuz have subsided with new negotiations on opening the strait, leading to lower oil prices. This decrease in oil prices could reduce safe-haven demand for precious metals, but may also alleviate inflation pressure and support gold and silver prices.