S&P 500 5,235.18 +1.02%EUR/USD 1.0840 +0.21%GBP/USD 1.2710 +0.14%USD/JPY 149.50 −0.18%BRENT $82.40 −0.81%BTC $67,800 −0.21%GOLD $2,341 +0.55%NASDAQ 16,420.55 +0.74%S&P 500 5,235.18 +1.02%EUR/USD 1.0840 +0.21%GBP/USD 1.2710 +0.14%USD/JPY 149.50 −0.18%BRENT $82.40 −0.81%BTC $67,800 −0.21%GOLD $2,341 +0.55%NASDAQ 16,420.55 +0.74%
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Money Talk

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Why Gold and Silver Investors Should Hold Off on Buying

Recent price corrections in gold and silver may offer a long-term entry point, but investors should resist the urge to bottom-pick. According to Michele Schneider, Chief Market Strategist at MarketGauge, the current market volatility demands technical confirmation before traders commit to new positions in precious metals.

Why Gold and Silver Investors Should Hold Off on Buying

While the June 11 selloff signaled a potential turning point, the market has yet to provide the necessary follow-through to confirm a durable bottom. Schneider suggests that investors look for consolidation or a close above the previous day’s high on strong volume to prove that genuine buyer demand is returning to the futures market. She maintains that silver, which has shown resilience by holding its 50-week moving average, remains a superior indicator for the sector's health compared to gold.

Beyond technical charts, the broader economic environment remains complex. Schneider points to the K-shaped nature of the U.S. economy, where persistent inflation and borrowing costs weigh heavily on lower-income households while resilient business data provides a temporary buffer. Despite this, she remains bullish on the long-term outlook for precious metals, citing geopolitical instability, rising government debt, and sustained central bank demand—particularly from China—as fundamental drivers. Until market momentum stabilizes, she advises a cautious approach: wait for clear signals and build positions incrementally rather than betting on an immediate rebound.

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