Gold (XAU/USD) remains in consolidation mode near key technical levels, while silver (XAG/USD) holds strong above $37, supported by bullish momentum and technical structure.
🔸 Gold Struggles Near Triangle Resistance
Gold faced selling pressure on Thursday, dropping from near $3,450 to around $3,350 as investors moved out of safe-haven assets into equities. Improved global risk sentiment—driven by positive developments in EU-US trade talks—was a key factor behind the shift.
US President Donald Trump signaled progress in negotiations with the European Union, offering tariff reductions in exchange for market access. German Chancellor Merz also expressed optimism, helping to fuel investor confidence and reduce gold’s safe-haven appeal.
Adding to the volatility was upbeat US economic data. The Services PMI rose sharply to 55.2, the highest reading of the year, while jobless claims fell for the sixth consecutive week—both pointing to a strong US economy. Although the US Dollar attempted to rebound, its gains remained limited as traders weighed the mixed macro outlook.
🟡 Gold Technical Outlook: Compression Builds
Daily Chart – Ascending Triangle Structure
Spot gold remains capped by resistance near $3,450, the top of an ascending triangle. The recent pullback to $3,350 signals price compression within the triangle, hinting at a potential breakout in either direction.
4-Hour Chart – Range-Bound Trade
Gold is trading between $3,200 and $3,500 in a tight consolidation zone. After bouncing from $3,200 and failing to hold above $3,430, the metal now awaits a decisive breakout.
A move above $3,450 would confirm a bullish breakout, while a drop below $3,300 could trigger a deeper correction.
🔸 Silver Maintains Bullish Momentum Above $37
Silver continues to outperform as it consolidates recent gains after a breakout above $37. The metal completed a classic “cup and handle” pattern and surged past key resistance zones, now holding firm with bullish momentum intact.
Daily Chart – Bullish Setup Remains Intact
The $35 support area is now a critical floor. As long as silver trades above this level, the bullish structure favors a move toward the $42–$43 region in the coming weeks.
4-Hour Chart – Minor Pullback Within Uptrend
Silver’s 4-hour chart shows healthy consolidation after the recent breakout. The bullish trend remains intact above $34.50, and indicators suggest upside continuation is likely.
🔻 US Dollar Index (DXY) Under Pressure
Daily Chart – Bearish Reversal in Progress
The DXY is showing signs of further weakness after being rejected at the 50-day SMA. If the index drops below 96, it could accelerate toward the 90 zone—potentially fueling a fresh rally in gold and silver.
4-Hour Chart – Descending Channel Develops
The DXY remains trapped in a downward sloping channel. Resistance near 100.50 held strong, and renewed pressure below 97.20 suggests the index may retest lower support levels.
🔍 Outlook
- Gold needs a breakout above $3,450 to confirm bullish continuation. Below $3,300 would turn the short-term bias bearish.
- Silver holds firm above $37 and eyes $42–$43 if support at $35 holds.
- DXY weakness is key: a continued slide could drive gold to $3,800 and silver to $50 over the medium term.
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