Gold, Silver, US Dollar Technical Analysis: Prices Correct Amid Peace Hopes and Fed Speculation

Gold (XAU) prices dropped to $3,000 on Friday after reaching record highs last week. The price rebounded from the key level of $3,000 toward $3,025 but remains in correction mode. This decline comes as hopes for a peace deal between Ukraine and Russia increase. Additionally, positive developments from talks in Riyadh have reduced safe-haven demand, pushing the yellow metal lower.

Ukrainian and US officials described the talks as productive and focused. The discussions emphasized the protection of energy facilities and critical infrastructure. With further dialogue expected between US and Russian delegates, market sentiment reflects a shift toward reduced geopolitical risk.

Despite the price drop to $3,000, the overall price structure remains bullish. Bullish sentiment is further supported by the potential interest rate cuts signaled by the Federal Reserve. The Fed’s steady stance in recent meetings reflects a cautious approach amid ongoing economic uncertainties. If the US economy continues to slow, investor demand for gold may rise again as a safe-haven hedge. Key events influencing gold prices this week include the flash manufacturing PMI on Monday, housing data on Tuesday, and GDP figures on Thursday. Due on Friday, the US Core PCE Price Index will also be closely monitored for its potential impact on market sentiment.

Gold (XAU) Technical Analysis

Gold Daily Chart – Resistance

The daily chart for gold shows that the price has reached the resistance area of the ascending channel at $3,055 and started to correct lower. However, it found support at $3,000—previously a broken resistance—and rebounded above $3,020. Friday’s correction suggests that the price is consolidating around this zone. A break above $3,050 would signal further upside toward the $3,200 level.

Gold 4-Hour Chart – Positive Price Action

The 4-hour chart for gold shows that it has found support at $3,000 and has initiated a rebound. A break below $3,000 would indicate a move toward the $2,950 support. However, a break above $3,050 would signal a move higher.

Silver (XAG) Technical Analysis

Silver Daily Chart – Correction within Positive Trend

The daily chart for silver (XAG) shows that the price moved lower on Friday, but the overall price action remains bullish. It is still trading above the key level of $32.50, which suggests that bullish momentum is intact. Additionally, the price remains above the 50-day and 200-day SMAs, indicating a continued positive trend. A correction in silver is considered a buying opportunity, with a target of $35.

Silver 4-Hour Chart – Ascending Broadening Wedge

The 4-hour chart for silver shows the formation of an ascending broadening wedge pattern, highlighting increased volatility. Last week’s pullback to $32.60 indicates a healthy correction. A move above $34.30 will keep the trend positive toward the $35 level.

US Dollar (DXY) Technical Analysis

US Dollar Daily – Rebound from Support of 103.50

The daily chart for the US Dollar Index shows positive price action at the support level 103.50. The rebound is developing within a broader bearish trend. As long as the index remains below the 105.20 and 107 resistance levels, it will likely continue trading lower. A break below 103.50 would signal a move toward the 100.65 level.

US Dollar 4-Hour Chart – Divergence

The 4-hour chart for the US Dollar Index shows that the index is developing positive price action as a double bottom, with RSI also showing bullish divergence. However, the descending channel indicates the overall trend remains bearish. Immediate resistance is at 105.20. A break below 103.50 would signal increased bearish pressure.