Gold, Silver, and AUD/USD Technical Analysis: Market Trends and Indicators

AUD/USD remains under bearish pressure and approaches the $0.62 band, which is labelled as the support band. The strength of the US Dollar pressures the Australian Dollar as markets expect growth and inflation-boosting policies under the new Trump administration. A quiet market environment ahead of the New Year holiday further limits any significant recovery for the Aussie. The Federal Reserve’s cautious approach to rate cuts also supports the Greenback, keeping AUD/USD under pressure.

On the other hand, gold (XAU) remains steady as markets await further developments in US monetary policy. Additionally, investors are monitoring the impact of potential trade tariffs from the Trump administration. Fed Chair Powell’s emphasis on inflation progress suggests limited room for aggressive rate cuts, which could cap gold’s upside. However, persistent uncertainties around inflation and global economic policy leave gold with a firm support base.

Moreover, the weekly Initial Jobless Claims fell to their lowest level in a month, as shown in the chart below. For the week ending December 21, 219,000 Americans filed for unemployment benefits, down from 220,000 the previous week. This figure also came in below the market expectation of 223,000. The US Dollar Index showed little movement following the release of the data due to thin market liquidity.

Silver (XAG) is also influenced by the strong US Dollar and subdued market activity. The potential increase in inflation due to trade policies under the Trump administration could lend eventual support to silver as a hedge against inflation. In the short term, silver remains range-bound, awaiting clear directional cues from economic data.

Gold (XAU) Technical Analysis

Gold Daily Chart – Rebound from Ascending Channel

The daily chart for gold shows that the price has rebounded from the support of the ascending channel, where the 100-day SMA lies. The price remains above the red-dotted trendline, indicating positive momentum. However, the RSI fluctuates around the mid-level, signalling a neutral zone. A break above the 50-day SMA, near $2,665, could drive prices higher.

Gold 4-Hour Chart – Consolidation

The 4-hour chart shows that the price trades within the channel during the Christmas holidays and targets $2,650. A break below $2,580 could push gold prices lower. The trend remains neutral as the price searches for direction, awaiting US economic data.

Silver (XAG) Technical Analysis

Silver Daily Chart – Ascending Channel

The daily chart for silver shows that the price has broken below the ascending channel’s support area. However, it failed to break below the red-dotted trendline and rebounded higher. The price closed back above the 200-day SMA after this drop, highlighting strength. Fake breakouts are common in December due to thin market liquidity. If the price recovers above the ascending channel lines, it could continue to accelerate higher.

Silver 4-hour Chart – Descending Broadening Wedge

The 4-hour chart shows positive developments in the silver market. The price is attempting to recover above the $29.60 area, indicating positive momentum. The RSI is turning upward from the mid-level, suggesting a potential move toward $31.

AUD/USD Technical Analysis

AUD/USD Daily Chart – Bearish Pressure

The daily chart for AUD/USD shows bearish pressure, with the price dropping to the lower support band. Strong support lies at $0.6170. A confirmed break below this level could initiate a long-term decline in AUD/USD. However, a strong rebound from this level may lead to a recovery within the red zone on the daily chart.

AUD/USD 4-Hour Chart – Descending Channel

The 4-hour chart for AUD/USD shows that the price is trading within a descending channel, indicating bearish pressure. The price is currently at the support zone and is seeking a rebound. However, a break below $0.6170 could extend the bearish momentum.