Gold and Silver Technical Analysis: Key Support Levels and Next Targets

Gold (XAU) prices consolidated after the sharp correction from the $3,500 region. This drop was due to the rebound in the US dollar and an improvement in sentiment following news of potential tariff exemptions by China. Traders also booked profits ahead of the weekend, adding further pressure to gold prices.

On the other hand, silver (XAG) prices also felt the weight of the market shift but remained relatively more resilient. Despite the strong correction in gold, silver prices remained strong due to industrial and investment demand. The volatility driven by shifting US-China trade headlines created uncertainty, but silver’s performance hints at potential strength once market sentiment stabilizes.

Gold and silver traders will focus on upcoming US data releases, including the JOLTS report, GDP figures, and Nonfarm Payrolls. Weak economic numbers could reignite safe-haven demand, especially with consumer confidence already weakening. Lower real yields, softening sentiment, and high inflation expectations favor a bullish long-term trend for gold and silver despite short-term volatility.

Gold (XAU) Technical Analysis

Gold Daily Chart – Consolidation

The daily chart for gold shows that the price is consolidating at extreme overbought conditions. The emergence of a bearish hammer at resistance has pushed prices below the $3,370 level. The resistance at $3,370 is defined by the ascending broadening wedge pattern, where prices are currently consolidating. If gold fails to break above $3,370, the next strong support will be the mid-black dotted trendline, which marks the ascending channel support.

Gold 4-Hour Chart – Short-Term Price Extension

The 4-hour chart for gold shows that the price correction from $3,500 was due to extreme overbought market conditions. The correction has hit the support level at $3,260. A rebound is developing from $3,260, showing market strength. A break above $3,400 will keep the bullish momentum alive.

Silver (XAG) Technical Analysis

Silver Daily Chart – Positive Development

The daily chart for silver shows that the price is building strong bullish momentum above the 50-day SMA. The strong daily key reversal above the 50-day SMA indicates the possibility of an upward trend. The price is likely to move toward $35, where a break above $35 could take silver to new highs. Moreover, the RSI remains above the mid-level, which supports the positive trend.

Silver 4-Hour Chart – Positive Development

The 4-hour chart for silver shows that the rebound from $28 was positive due to the emergence of a double bottom formation. Moreover, prices have sharply moved above $32, indicating strong price action. The short-term target for silver is $35, where a break above this level will likely push prices toward $38.

US Dollar (DXY) Technical Analysis

US Dollar Daily – Bearish Pressure

The daily chart for the US Dollar Index shows that the index is rebounding from strong oversold conditions, as indicated by the RSI. The red and black dotted trend line highlights strong resistance in the US Dollar Index around the $100 region. A break above $100 would support further upside in the dollar. However, the overall trend remains bearish, and this rebound is likely to be capped between the $100 and $102 resistance region.

US Dollar 4-Hour Chart – Inverted Head and Shoulders

The 4-hour chart for the US Dollar Index shows that the index trades within a descending channel. However, the index has formed an inverted head and shoulders pattern at the oversold region near the support of the descending channel. The price is building positive momentum at lower levels, indicating the possibility of a rebound. Strong resistance levels are seen at 101.40 and 102.90.