Gold holds firm at $3,260 support while silver eyes a major breakout above $32, setting up the next bullish move.
In this article:
Gold -0.85% | Silver -0.84%
The precious metals market is showing resilience after recent volatility triggered by a stronger U.S. Dollar and shifting sentiment around U.S.-China trade tensions.
Gold (XAU/USD) saw a sharp pullback from the record $3,500 highs, pressured by profit-taking and a temporary risk-on mood. However, gold found critical support near $3,260, indicating that buyers are still active at lower levels.
Meanwhile, silver (XAG/USD) has held up even better, staying robust above the key $30 psychological zone, backed by sustained industrial demand and strong investment interest. This suggests silver may lead the next rally once market sentiment stabilizes.
Investors are now turning their attention to critical U.S. economic data — including the JOLTS job report, GDP figures, and Nonfarm Payrolls — to gauge recession risks and future safe-haven demand.
Slowing growth, persistent inflation, and weaker consumer confidence could reignite bullish momentum for both gold and silver, reinforcing the longer-term uptrend.
Daily Chart – Consolidating Near Resistance
Gold is currently consolidating after the dramatic rally to $3,500. A bearish hammer pattern near $3,370 triggered selling pressure, pushing prices lower.
The $3,370 level remains a key resistance within the ascending broadening wedge pattern.
If bulls fail to reclaim this level, strong support lies around the mid-range trendline near $3,260.
4-Hour Chart – Rebound Attempt from Key Support
The 4-hour gold chart reveals that the pullback from overbought conditions found solid footing at $3,260.
If bulls manage a breakout above $3,400, the bullish momentum is likely to resume, with $3,500 once again in sight.
Daily Chart – Strong Setup Above 50-Day SMA
Silver continues to build bullish momentum, firmly holding above its 50-day simple moving average (SMA).
A daily key reversal signal suggests upside potential toward the $35 level.
The RSI remains supportive, staying comfortably above midline levels.
4-Hour Chart – Breakout Pattern in Play
Silver’s 4-hour chart shows a successful double-bottom breakout from the $28 zone, propelling prices past $32.
Next short-term target sits at $35, and a clear break could open doors for a rally toward $38.
Daily Chart – Temporary Rebound, But Trend Remains Bearish
The Dollar Index is bouncing from oversold RSI conditions but faces tough resistance between 100 and 102.
Unless DXY decisively breaks above 102, the broader bearish trend remains intact — a positive backdrop for gold and silver.
4-Hour Chart – Inverted Head and Shoulders Formation
Short-term charts hint at a bullish reversal pattern with an inverted head and shoulders near the descending channel support.
Upside resistance is seen at 101.40 and 102.90, but overall momentum for the dollar remains fragile.
Stay tuned to DailyForex.pk for real-time updates and expert analysis on gold, silver, forex, and the latest market trends!
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