Gold, Silver, AUD/USD Technical Analysis: Consolidation Patterns and Key Support Zones

Gold (XAU) consolidates within ranges following the release of US Nonfarm Payrolls (NFP) data for November. The labor market report showed 227,000 new jobs added, surpassing the expected 218,000. This stronger-than-expected labor market performance increased the likelihood of a Federal Reserve interest rate cut in December. The lower interest rates typically favor gold by reducing the opportunity cost of holding the non-yielding asset. However, December’s seasonal trend mutes the short-term trend for gold, pointing to consolidation.

On the other hand, silver (XAG) prices remain range-bound as the market digests similar economic data. The interplay between wage growth, which rose by 0.4% monthly, and inflation expectations plays a key role in shaping silver’s trajectory. The 10-year US Treasury yield’s drop to 4.13% could provide some support to precious metals, as investors assess the broader macroeconomic backdrop. Gold and silver markets may stabilize if Federal Reserve actions align with rate-cut expectations in the upcoming policy meeting. The CPI data release on Wednesday and the PPI data release on Thursday may move the gold and silver markets for this week.

AUD/USD pair faces bearish sentiment as the Reserve Bank of Australia (RBA) is expected to begin cutting rates in Q2 2025. Financial markets price a 70% chance of a rate cut in April, reflecting weakening economic growth and a softening labor market. While the RBA remains cautious, signs of slowing demand and supply imbalances suggest gradual easing ahead. This dovish outlook continues to pressure the Australian Dollar, leaving AUD/USD vulnerable to further downside.

Gold (XAU) Technical Analysis

Gold Daily Chart – Consolidation

The daily chart for gold indicates that the price is consolidating within a bullish trend. A strong rebound from the pivotal support at $2,550 demonstrates underlying strength. This support is defined by the intersection of the 100 SMA and a red dotted trend line. Due to seasonal factors, the price is likely to remain in tight consolidation. A breakout above the 50 SMA could initiate an upward trend, while $2,583 and $2,540 serve as key support levels.

Gold 4-Hour Chart – Range-Bound

The 4-hour chart shows that the rebound from $2,550 has kept the gold market within a range-bound pattern. The RSI is below the midline, indicating the potential for another dip before a move higher. A break below the $2,550 support level could signal further downside in the gold market.

Silver (XAG) Technical Analysis

Silver Daily Chart – Ascending Channel

The daily chart for silver reveals a strong bullish pattern within an ascending channel. The price is currently trading at the support level of this channel. This support is reinforced by the 200-day SMA, indicating that the silver market is likely to rebound from this point. The immediate resistance lies at the $31.50 area, and a breakout above this level could trigger the next upward move.

Silver 4-hour Chart – Descending Broadening Wedge

The 4-hour chart for silver indicates bullish price action within a descending broadening wedge pattern. An inverted head-and-shoulders formation is developing at the strong support level of $29.60. Resistance is positioned between $32.20 and $32.50, and a breakout above this range could trigger a bullish move in the silver market.

AUD/USD Technical Analysis

AUD/USD Daily Chart – Price Fluctuations

The daily chart for AUD/USD shows that the price fluctuates within a wide range over the past year, lacking a clear directional trend. Each rally is followed by a sharp decline, keeping the pair range-bound. The RSI remains neutral, indicating a lack of strong momentum. The pair is currently approaching the red zone, which defines key support levels and suggests a potential rebound higher. Overall, AUD/USD remains within the trading range of $0.63 to $0.69. A breakout beyond these levels will determine the pair’s next directional move.

AUD/USD 4-Hour Chart – Descending Channel

The 4-hour chart for AUD/USD shows that during the October and November decline, the pair traded within a descending channel. The immediate resistance is at $0.6550, and a breakout above this level could trigger an upward move. However, the pair remains under bearish pressure in the short term and is likely to find support around the $0.63 zone.