Both gold and silver will resume their upward trend！

As the Fed's interest rate cut expectations faded, the dollar and US Treasury yields rose, and spot gold $Gold - main 2406(GCmain)$ prices fell 3% last week, the biggest weekly decline since early December last year.

But technically speaking, after the sharp correction in precious metals prices last week, gold and $Silver - main 2407(SImain)$ prices are expected to rebound this week, with silver leading the way.

Spot gold prices rose 0.74% to $2,351.37 per ounce on Monday, while silver prices jumped nearly 4% to $31.522, leading the metals sector higher.

Gold seems to rebound in the Ichimoku Cloud (0.618-0.786 retracement) and the secondary support level near $2326, but the gold price may still test the 0.786 retracement level of $2314 before rebounding. If gold prices break above $2,385 an ounce, the previous upward trend is expected to be resumed and look up to $2,500. The 55-day moving average would add uptrend support, while a close below $2,277 would confirm the downtrend.

In addition, the relative Strength index (RSI) diverged, indicating that the uptrend may be in a state of exhaustion. However, if the index returns to the key level of 60 and above the downtrend line, it will be a strong signal that gold prices are moving higher again.

As for silver, spot silver has rebounded at the 0.382 Fibonacci retracement level of $30 per ounce, and there is a high probability that the price of this precious metal will resume its uptrend. The RSI daily line is still showing positive sentiment and no divergence, indicating that silver prices could push above $32.52.

From the weekly perspective, if we take down $32.52, silver will not encounter strong resistance until it rises to the vicinity of $34.40-35.40. However, if it breaks below $30, silver could extend its downward retracement trend to the 0.618 retracement at $28.50.

In addition to technicals, there are a number of other factors supporting gold prices to continue to rise, including the likelihood that the Fed will cut interest rates this year, gold remains a strong hedge against macroeconomic uncertainty and geopolitical risk, and continued purchases by central banks and steady demand in key physical markets.

In the end, it's just a matter of time before Treasury yields and the dollar ease up, and that could give gold a boost!