Gold, Silver, AUD/USD Technical Analysis: Rebounds Amid Thin Liquidity and Risk Factors

The US dollar index (DXY) remains steady amid thin liquidity and subdued trading activity caused by the Thanksgiving and Black Friday holidays. However, the index corrected from the strong resistance of the 107 area. This correction in the US dollar causes a rebound in the AUD/USD pair from the support region. The geopolitical risks from the Russia-Ukraine conflict and uncertainty around US President-elect Donald Trump’s tariff policies boost the demand for the safe-haven dollar.

Moreover, the Australian dollar has struggled against US-China trade tensions and a cautious global risk tone. The Reserve Bank of Australia’s (RBA) hawkish stance and strong trimmed mean CPI figures for October provided temporary support. However, the AUD/USD pair remains under pressure. The headline inflation in Australia dropped to multi-year lows, primarily due to lower energy and fuel prices. This decline has limited bullish momentum for the Australian dollar. The RBA is expected to keep rates unchanged at 4.35%. Combined with a lack of significant buying interest, AUD/USD continues to trade within a downtrend.

On the other hand, gold (XAU) corrects from the strong resistance of $2,790 and consolidates within the ascending channel. Thin liquidity and reduced risk appetite have limited major moves, but the precious metal remains supported by persistent inflation and geopolitical uncertainties. Gold prices rebounded from support near $2540, following a correction from $2,790 resistance, but upward momentum remains capped within the range. Meanwhile, silver (XAG) mirrors gold’s subdued action, consolidating its price near key levels. The metal faces resistance from economic uncertainty and demand fluctuations. However, persistent geopolitical risks continue to make silver attractive as a safe-haven asset.

Gold (XAU) Technical Analysis

Gold Daily Chart – Ascending Channel

The daily chart for gold shows that the price trades within an ascending channel. The price encountered resistance at $2,790, near the channel’s upper boundary, and corrected lower toward the channel’s support. This support level, intersected by the red-dotted trend line, triggered a strong rebound from the $2,540 zone. Currently, gold consolidates within the range defined by the ascending channel.

Gold 4-Hour Chart – Consolidation

The 4-hour chart further highlights this consolidation, as the price rebounds from the $2,540 zone and finds resistance at $2720, where another correction occurs. The RSI remains below the midline, suggesting another drop may happen before the next upward wave.

Silver (DXY) Technical Analysis

Silver Daily Chart – Bullish Hammer Inside Ascending Channel

The daily chart for spot silver shows that the price is trading within an ascending channel. The correction from the $34.80 resistance level has found support at $29.60, aligning with the ascending channel’s lower boundary. The downward-trending black trend line at $29.60 further validates this support level. The formation of a bullish hammer around this level suggests that the next price move will likely be upward.

Silver 4-hour Chart – Descending Broadening Wedge

The 4-hour chart for spot silver shows that the price has formed a descending broadening wedge pattern. On November 14, the price hit the support of the descending broadening wedge at $29.60 and initiated a rebound. A second touch of this support is forming a potential double bottom, which will be confirmed if the price breaks above $31.50. The $32.50 level remains a critical threshold for sustaining upward momentum in spot silver.

AUD/USD Technical Analysis

AUD/USD Daily Chart – Price Fluctuations

The daily chart for AUD/USD shows that the price has fluctuated within a wide range over the past year. There is no clear direction for AUD/USD, as a sharp decline follows each rally. The RSI also remains neutral, reflecting the lack of strong momentum. The price weakness in October and November brought the pair down to the lower support of this range. The price range for AUD/USD is defined by the $0.63 and $0.69 levels. 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 drop in October and November, the pair traded within a descending channel. The immediate resistance for AUD/USD is $0.6550; a break above this level could initiate an upward move. However, if the price fails to break above $0.6550, the pair will drop again toward the $0.6300 zone.