Gold and silver monthly charts both signal a bearish outlook; the bull market may take six months to recover.

Mars Finance News, on April 14th, Heraeus precious metals analyst’s latest report pointed out that both gold and silver formed bearish engulfing patterns on the March monthly candlestick chart—opening higher than the previous month but closing lower than the previous month. This signal closely coincides with the timing of the late January bull market stagnation and the military actions by the US and Israel against Iran. Analysts warn that before the bull market is likely to resume, the precious metals market may still undergo several months of consolidation and sideways fluctuations.

Regarding gold, the last time a similar bearish engulfing pattern appeared was in April 2022, after which the gold price fell from $2,000 per ounce to $1,600, declining for six consecutive months. Heraeus stated that if the recent upward trend reverses, the next key support level is near the March low, around $4,100 per ounce. However, analysts also pointed out that rising inflation and declining real interest rates will support gold demand, and the current correction is expected to be absorbed by the ongoing bull market.

In terms of central bank gold purchases, overall, central banks remain net buyers, with a net purchase of 27 tons in February, higher than 5 tons in January. The Polish central bank increased holdings by 20.2 tons in February, the largest single-month increase in nearly a year; Uzbekistan and Kazakhstan also increased holdings; Turkey and Russia are the main sellers.

Regarding silver, Perth Mint’s March sales of silver bars and coins dropped to 976k ounces, a significant decline from nearly 2 million ounces in February, which was a two-year high. U.S. Eagle silver coin sales also slightly decreased from 1.7 million ounces to 1.6 million ounces, but total sales in the first quarter of this year exceeded 8.1 million ounces, a notable increase compared to 5.3 million ounces last year.