Gold, Silver, AUD/USD Technical Analysis for CPI Week

The US released multiple employment-related reports throughout the week. The ADP report indicated that the private sector added 143K new jobs in September 2024. On the other hand, the Nonfarm Payroll (NFP) report showed an increase of 254K new jobs. Additionally, the unemployment rate fell to 4.1%. The US dollar surged in response, closing at higher weekly levels.

Meanwhile, Gold (XAU) and Silver (XAG) consolidated throughout the week. AUD/USD declined sharply due to the strengthening of the US dollar. The US will release the FOMC meeting minutes on Wednesday and the September CPI data on Thursday. Additionally, the September PPI data will be released on Friday. These inflation figures are expected to drive market movements for gold, silver, and AUD/USD. Despite the strong US dollar, gold and silver show consolidation patterns that indicate a potentially bullish setup. This bullish setup will likely strengthen ahead of the upcoming inflation data releases.

Gold (XAU) Technical Analysis

Gold Daily Chart – Bullish Pennant before CPI Week

Gold consolidation throughout the week has formed a bullish pennant. The price remains above the 20 and 50 SMAs, indicating a bullish trend. A break above $2,686 will likely initiate upward momentum in the gold market. The daily support levels are at $2,606 and $2,525. Gold is consolidating within this pennant ahead of CPI week.

Gold 4-Hour Chart – Rising Channel Pattern

The bullish pennant is also observed on the 4-hour chart. This pennant has formed within the rising channel pattern. Last week’s NFP release triggered strong volatility, but the price remains above the channel’s midline. The support levels are $2,630 at the black trend line and $2,590 at the rising channel pattern.

Silver (XAG) Technical Analysis

Silver Daily Chart – Inverted Head and Shoulders

Silver attempted to break above $32.50 for the second time but failed to close above this level. A daily and weekly close above this level will likely initiate the next upward momentum. The trend is upward since the price remains above the 20 and 50 SMAs. The support levels are at $29.42 and $30.81. The RSI is still not overbought territory, which indicates potential for further upside.

Silver 4-Hour Chart –Rounding Bottom at Key Level

Silver is forming a bullish price pattern at the key level of $32.40 on the 4-hour chart. This bullish formation is identified using a rounding bottom pattern. The price is consolidating within the rising channel and attempting to break higher. A break above $32.50 will likely trigger a strong move. The red arrows indicate support levels at $29.42 and $30.81.

AUD/USD Technical Analysis

AUD/USD Daily – Adam and Eve Pattern

The Australian dollar has been strong over the past few weeks due to strength in the gold market. However, the strength of the US dollar last week pushed the AUD/USD pair lower. This drop has taken the price below the breakout zone of the Adam and Eve pattern. Despite this, the price remains above the 50 and 200 SMAs, indicating an overall upward trend in the AUD/USD.

AUD/USD 4-Hour Chart – Short-Term Support at Rising Channel

The drop in AUD/USD has taken the price to a short-term support level. This support level is defined by the rising channel pattern on the 4-hour chart. The price declined from the wedge pattern and reached the support line of the rising channel. The initial support is at $0.6790, and a break below this level could push the pair down to $0.66.