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Gold and silver are testing critical support zones that could determine whether current pressure turns into broad capitulation across precious metals. Jesse Colombo, an independent precious metals analyst and founder of the BubbleBubble Report, warned that a definitive breach could trigger substantially more downside.

Colombo described Friday’s price action as unusual because the decline was not driven by a clear surge in the dollar. Treasury yields and bond yields were falling, while oil was rising by only about 2% to 2.5%.

That combination did not appear sufficient to explain the scale of the move in gold. “It doesn't seem like the sell-off in gold is commensurate with the rise in oil,” Colombo said.

He also pointed to a technical component behind the weakness. Colombo suspects risk aversion ahead of the midterms, along with liquidations in technology stocks, may be contributing to the pressure.

Concern surrounding the possibility of an escalation in the Iran conflict is adding another source of uncertainty. “I've even seen some speculation that there could be some action this weekend,” he said.

Colombo said President Trump often prefers to begin such action on a weekend, pursue a quick skirmish and finish before futures markets reopen on Sunday evening. That possibility, he said, could be encouraging traders to sell first and ask questions later.

Negative sentiment has already created snowballing downside momentum, according to Colombo. The danger now is that losses accelerate if key technical floors fail to withstand the selling.

For COMEX gold futures, Colombo has been closely watching the support zone between $3,900 and $4,000. That floor formed exactly one year ago during October and November, and prices are now testing it without having broken decisively below it.

The Friday close and the opening of the new week will be crucial in determining whether that zone remains intact. “Does it continue to hold this zone? We're really at a critical level,” he said.

A strong volume close beneath the current floor, possibly during the following week, would shift attention to the next support level around $3,500. Colombo carefully avoided predicting that gold would necessarily fall that far.

“I'm not saying it will go there. I'm just saying if this current support indeed fails, the next level to watch is $3,500,” he said.

Silver is facing its own major technical test. Colombo is monitoring the 45 to 55 support zone in COMEX futures, an area formed during the October and November highs and lows exactly one year earlier.

That range marked the final area where silver consolidated and bounced before its large parabolic advance into late 2025 and early 2026. Colombo wants to see how the metal behaves as it returns to that pivotal region.

The $50 level is especially important in his analysis because of the role it played in 1980 and again in 2011. He described the 1980 level as roughly the peak of the 1970s secular bull market in silver and precious metals.

Silver moved above $50 in November 2025, a development Colombo interpreted as evidence of a major multiyear breakout. Prices are now approaching that level from above, turning the former barrier into a possible area of support.

Colombo does not view exactly $50 as an absolute dividing line because volatility could briefly carry silver beneath it. A quick flush would not necessarily destroy the support zone if prices recover and hold nearby.

For now, Colombo said silver is still holding that support, which remains the basis of his outlook. If it breaks, however, traders would need to shift their focus toward the next technical floor, just as they would if gold loses its current zone.

Both metals therefore remain perched at levels with potentially severe consequences. Gold has not yet surrendered the $3,900 to $4,000 region, and silver continues to defend the broader zone surrounding $50, but Colombo’s warning is clear: decisive failures could open the door to another leg lower.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.