Gold (XAU/USD) pulled back sharply from $3,392 to $3,333 on Tuesday as upbeat US labor market data and rising bond yields lifted the US Dollar. Meanwhile, Silver (XAG/USD) surged past key resistance at $33.60, setting its sights on the $35 level, bolstered by inflationary pressures stemming from higher US metal tariffs.
Gold & Silver Market Snapshot
- Gold (XAU/USD): Down 0.20%, now rebounding above $3,370
- Silver (XAG/USD): Down 0.29%, holding above $33.60
- Dollar Index (DXY): Recovered to 99.22
- US 10-Year Treasury Yield: Rises to 4.462%
- Real Yields: Climb to 2.132%
US Jobs Data Boosts USD, Pressures Gold
Tuesday’s JOLTS report revealed that US job openings soared to 7.39 million in April, surpassing expectations of 7.10 million. This labor market strength reignited demand for the US Dollar, causing gold to slide to $3,333 before recovering.
Rising bond yields further dampened gold’s near-term outlook, making non-yielding assets less attractive. However, ongoing US-China trade uncertainty and rumors of a Trump-Xi Jinping call helped gold rebound above $3,370, keeping the medium-term bullish narrative intact.
Silver Rallies on Inflation Risks and Metal Tariffs
Silver broke through the key $33.60 resistance and climbed toward the $35 level. Industrial metal tariffs – especially the doubling of steel and aluminum tariffs to 50% – stoked inflation concerns, supporting silver’s dual role as a precious and industrial metal.
Yet, silver’s upward potential may be capped in the short term due to dollar strength and yield pressure. Market attention now shifts to further US jobs data and Fed rate cut expectations, which are currently pricing in 48.5 basis points of easing by year-end.
Gold (XAU/USD) Technical Analysis
Daily Chart: Eyes on $3,500
Gold is trading inside an ascending broadening wedge, having broken out of a descending channel. This breakout opens the door toward $3,500, with the RSI rebounding from the mid-range — a bullish signal.
4-Hour Chart: Bullish Momentum Strengthens
Price action shows a breakout from a descending broadening wedge at $3,360, targeting the $3,400 resistance zone. The pattern also displays an inverted head-and-shoulders, supporting a bullish continuation. Key resistance lies at $3,400 and $3,500.
Silver (XAG/USD) Technical Analysis
Daily Chart: Bullish Breakout Above $33.60
Silver broke past its tight consolidation range above the 50-day and 200-day SMAs, confirming bullish strength. With RSI below 70, room for a move above $35 remains likely.
4-Hour Chart: Strong Price Action
Bullish momentum intensified from support at $31.80, and the breakout above $33.60 suggests a run toward $35, which could trigger a larger rally.
US Dollar (DXY) Outlook: More Weakness Ahead?
Daily Chart: Struggling Below 50-Day SMA
The DXY remains under bearish pressure, failing to close above the 50-day SMA and repeatedly rejecting 100.65. A break below 98.00 could trigger a slide toward the 90.00 area.
4-Hour Chart: Bearish Channel Holds
The index is moving inside a descending channel, with 101.60 acting as strong resistance. Support rests near the 96.00 zone, the channel’s lower bound.
Conclusion: Gold and Silver Remain in Focus
Despite temporary pullbacks due to strong US jobs data and rising yields, both Gold and Silver maintain a bullish technical setup. Tariff-driven inflation concerns and rate cut expectations could provide additional tailwinds in the coming weeks.
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