Gold and Silver Breakout: Triangle and Cup Patterns Point to Fresh Upside Momentum

Gold and silver are flashing strong bullish signals as traders rush to safe-haven assets amid escalating global trade tensions and tariff uncertainties. Technical patterns suggest both XAU/USD and XAG/USD may be gearing up for significant moves, with gold holding firm despite dollar strength and silver confirming a bullish breakout above key resistance.

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Gold (XAU/USD) Analysis: Ascending Triangle Sets Stage for Rally

Gold prices bounced back strongly on Friday, lifted by renewed fears of a global trade war. The latest tariff announcement from the US administration — including 35% duties on Canadian goods and a 50% tariff on copper — fueled safe-haven demand.

Despite a modest rebound in the US Dollar Index (DXY), gold remained resilient, currently trading above $3,360. Investors are closely watching upcoming US inflation and retail sales data, which could influence the Federal Reserve’s interest rate outlook. Even with expectations for modest CPI gains, geopolitical risks and global economic uncertainty are likely to support gold prices in the near term.

🔍 Technical Setup: XAU/USD Daily Chart

• Pattern: Ascending triangle with multiple bullish hammer candles at support
• Key Support: $3,250
• Breakout Trigger: A decisive move above $3,450
• Target: $3,750 and potentially higher
• Indicators: RSI above 50, price above 50-day SMA

A sustained breakout above $3,450 would confirm the ascending triangle and open the door to a potential surge toward $3,750.

🕒 4H Outlook

The 4-hour chart shows gold holding above $3,250 and poised for a breakout beyond $3,370. If this occurs, the next immediate resistance lies around $3,430, followed by the $3,500 mark.

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Silver (XAG/USD) Analysis: Cup Pattern Breakout Targets $40

Silver continues to outperform, surging above $37 after clearing neckline resistance from a bullish cup pattern. The rally, which began near $28.50, reflects growing industrial demand expectations and a technical breakout from long-term consolidation.

🔍 Technical Setup: XAG/USD Daily Chart

• Pattern: Cup with handle breakout
• Breakout Level: $37 (neckline)
• Upside Target: $40+
• Support: $35 and $34.50 zone

Silver’s breakout above $37 confirms bullish momentum, with $40 now acting as a short- to mid-term target.

🕒 4H Outlook

While short-term RSI shows overbought conditions, pullbacks are likely to be shallow. The broader trend remains bullish as long as silver holds above the $34.50–$35 support range.

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US Dollar Index (DXY): Rebound Within a Bearish Trend

The US Dollar Index rebounded from long-term support near 96.50 this week, challenging short-term resistance levels near 98–99. However, the broader structure remains bearish, with a head-and-shoulders pattern on the daily chart and a descending channel on the 4H timeframe.

• Rebound Resistance: 98–99
• Long-Term Resistance: 100.50
• Overall Bias: Bearish below 99–100.50 zone

Despite the dollar’s short-term bounce, gold and silver prices have maintained upward pressure, showcasing strong risk-off sentiment.

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