Gold and Silver Are Back in the Buy Zone
by Joel Cameron
Posted on 24 Mar, 2026 in
Against a backdrop of mounting military activity in the Middle East, the Reserve Bank of Australia (RBA), the European Central Bank (ECB), and the US FED all held policy meetings last week.
With no indications of the conflict in the Persian Gulf easing, the ECB and the FED decided to hold interest rates unchanged.
However, to the surprise of many market commentators, the RBA lifted its overnight cash rate for the second time this year by 25 basis points to 4.10%.
This policy divergence between developed central banks underscores the growing global economic uncertainty, which is one of the pillars of support driving investors to the safe-haven security of Gold, Silver and Platinum.
Two of the other pillars of support, lower interest rates and a weaker USD, went the other direction last week and pressured the precious metals complex sharply lower.
Physical Gold priced in USD traded lower every day last week, posted a 2.5 month low at $4477.00 and finished the week down 10.5% at $4493.00.
From a technical perspective, USD Gold is showing a Relative Strength Index (RSI) reading of 29.50.
The last time USD Gold showed an oversold reading of under 30.00 on the RSI was on October 6th, 2023 at $1810.00. Within seven weeks, the price was 18% higher at $2135.00.
Gold denominated in AUD also dropped during every session last week and slipped 11.1% lower to close at $6396.00.
AUD Gold is showing an oversold RSI reading of 27.70 and has a potential double bottom pattern at $6350.00.
The historical chart patterns for Gold in both currencies have shown that scaling into long positions when the RSI is at 30.00 or lower results in a positive trade within a few weeks.
Physical Silver priced in USD fell sharply during the back end of last week and posted a 15.7% loss for the week to close at $67.90.
With a RSI reading of 33.40, USD Silver is not technically oversold.
However, the last time USD Silver posted a RSI of 33.40 was on April 9th of last year at $28.30. Within two months, USD Silver was 30% higher at $36.90.
Silver denominated in AUD traded lower every day last week and closed out the week 16.3% lower at $96.55 with a RSI reading of 32.20.
The $92.70 level looks to be a potential double bottom chart point and a level of strong support.
The Gold versus Silver ratio rose 6.1% in favor of Gold and closed at 65.88. This means it takes 65.88 ounces of Silver to equal the value of one ounce of Gold.
Physical Platinum slipped 5.1% lower and finished the week at $1922.00. Platinum is now back within the Flag Pattern of $2350.00 to $1860.00, which contained prices throughout February and early March.
With a RSI reading of 37.25, longer-term investors can look to scale into additional long positions in the $1900.00 to $1850 range.
As mentioned above, the “Hawkish Hold” from the USD FED last week had a very negative impact on precious metals prices.
As illustrated on Chart 1, prior to the start of the military operations at the end of February, predictive markets were pricing in at least 60 basis points of FED FUNDS easing this year.
The inflationary uncertainties stemming from the potential protracted energy and supply line disruptions through the Persian Gulf have pushed rate cut expectations down to 20 basis points.
This is a big change in the US interest rate outlook, and combined with a firm USD, has pressured precious metals prices lower over the last three weeks.
But how much does this really mean for the safe haven metals going forward?
Chart 2 shows the prices of several markets since the military operation started.
It shows that spot Gold has lost 9.77%, the SP 500 Index has dropped 4.6%, bond yields are higher, the USD Index has gained 3.49% and Crude Oil has soared by 54.8%.
It is easy to understand when shipping lanes are blocked and energy infrastructure is being targeted, the Crude Oil prices will jump sharply.
But if the FED and other central banks are so concerned about inflation from higher energy costs that they have changed their collective minds about lowering interest rates, why hasn’t the USD spiked higher?
Based on the facts that Crude Oil is 50% higher, US 10-year bond yields are 11% higher, US stocks Indexes are lower and Precious metal are all down because the FED said that they were on hold, why isn’t the USD Index 15% to 20% higher?
The answer is simple: with the US deficit pushing $39 trillion, unemployment rates grinding higher, job creation sputtering, and the mortgage market teetering near default, the FED will have no choice other than lowering rates.
In fact, in addition to lowering the FED Funds rate three or four times, the central bank will also have to buy Mortgage-Backed securities just to keep the long end of the Treasury curve stable.
It will probably take a few weeks for this reality to permeate into global financial markets and kick start the next big rally in the precious metals.
As such, now is the time to consider buying the dip investors were hoping for in January.
Physical Gold, Silver and Platinum represent the purest form of money and have a proven track record of increasing wealth security for investors of all levels of sophistication.
This publication has been prepared for the GBA Group Companies. It is for education purposes only and should not be considered either general of personal advice. It does not consider any particular person’s investment objectives, financial situation, or needs. Accordingly, no recommendation (expressed or implied) or other information contained in this report should be acted upon without the appropriateness of that information having regard to those factors. You should assess whether or not the information contained herein is appropriate to your individual financial circumstances and goals before making an investment decision or seek the help the of a licensed financial adviser. Performance is historical; performance may vary; past performance is not necessarily indicative of future performance. Any prices, quotes or statistics included have been obtained from sources deemed to be reliable, but we do not guarantee their accuracy or completeness.