Gold faces deeper correction toward $3,800 as technical risks build - Avi Gilburt

Avi Gilburt says gold’s correction may not be over despite the metal reclaiming $4,700/oz, with a technical roadmap that could ultimately point to a drop below $4,000 and toward $3,800/oz, roughly 20% below current levels. Spot gold was quoted at $4,775.10/oz, up more than 2% on the day, but he sees near-term resistance at $4,800 as the key inflection point for the next leg. Gilburt outlined two paths: gold could stall around current levels and roll over, or break $4,800 and extend toward $5,200 before a deeper decline begins. He described the latter as the more “deceptive” setup, where a breakout convinces the market the correction is over before the downtrend resumes. Silver is seen in a similar technical posture, with downside risk toward $53.50 if it stays below its March high. For longer-term investors, he argues silver below $60 remains attractive over a 10-year horizon, though he does not rule out a further retracement toward $40 first. He also flagged mining equities as a potentially stronger levered play in the next rally phase, with selective opportunities across producers and developers, while broader commodity risk remains in play with oil seen potentially heading below $50 later this year.