Gold, Silver, Bitcoin Technical Analysis Amid Geopolitical and Economic Uncertainty

Markets anticipate a more measured approach to policy easing by the Federal Reserve, with expectations of a standard 25 basis point rate cut in November. This outlook has fueled the US dollar’s rally, which has limited further upside potential for gold (XAU) and silver (XAG).

Additionally, disappointment over China’s fiscal stimulus measures and weak inflation data have dampened investor confidence. This economic uncertainty has contributed to volatility in gold and silver prices. However, ongoing geopolitical tensions in the Middle East are driving increased safe-haven demand for gold, silver, and Bitcoin.

Gold has been consolidating within a positive range following last week’s US inflation data. On the other hand, Bitcoin (BTC) is attempting to break above a six-month bull flag. Similarly, silver is consolidating below the key level of $32.50, indicating price strength. The retail sales data on Thursday will define the next move in these instruments. As geopolitical and economic uncertainties intensify, gold, silver, and Bitcoin are expected to continue their rally.

Gold (XAU) Technical Analysis

Gold Daily Chart – Descending Broadening Wedge

The gold market has been trading within a descending broadening wedge pattern following the release of the US CPI data. This bullish pattern formed after a rebound triggered after the US CPI release. Gold prices find support above the red-dotted trendline on the daily chart. Despite the strong rebound, it failed to break the $2,663 level on Monday and Tuesday.

However, the overall outlook remains bullish. The RSI is turning upward from the mid-level which suggests the potential for another strong rally in gold prices. A break above the $2,685 level may initiate this rally. The development of the ascending channel and ascending broadening wedge patterns signals further upward momentum in the gold market.

Gold 4-Hour Chart –Continuation of Upward Trend

The descending broadening wedge pattern is also visible on the 4-hour chart. This pattern is observed within the ascending channel. A break above $2,663 will likely trigger the next move higher, with a target of $2,720. On the other hand, a break below $2,600 could initiate a deeper correction toward $2,585.

Silver (XAG) Technical Analysis

Silver Daily Chart – Inverted Head and Shoulders

Silver consolidates near the neckline of a head and shoulders pattern below. The neckline of the head and shoulders pattern is $32.50. This consolidation indicates price strength. As the price remains within the ascending channel, a break above $32.50 could drive prices toward $35. The RSI rebounding from the mid-level highlights the bullish momentum in silver. As long as the price remains above 50 SMA, the short-term trend remains bullish.

Silver 4-Hour Chart – Ascending Channel

The 4-hour chart for silver shows an ascending channel, with the price moving higher. The consolidation at the midpoint of this channel, followed by an upward turn, indicates that the next move in silver is likely to be higher. A break above $32.50 could trigger the next strong rally.

Bitcoin (BTC) Technical Analysis

Bitcoin Daily Chart – Double Bottom within Bull Flag Pattern

Bitcoin showed positive momentum on Monday, closing above the blue trendline on the daily chart. The price is once again challenging the 6-month bull flag at $68,000. A daily close above $72,000 would confirm the bull flag breakout and trigger the next surge in Bitcoin. The double-bottom formation in October highlights the bullish pressure and increases the likelihood of an upside breakout.

Bitcoin 4-Hour Chart – Breakout from Descending Channel

Bitcoin has broken out of the descending channel on the 4-hour chart and rallied higher. The strong price momentum following the breakout indicates strength. A break above $72,000 could trigger the next upward movement in Bitcoin. The RSI on the 4-hour chart is entering the overbought region. The overbought region suggests the possibility of further consolidation before the next move.