Gold and Silver Price Forecast: Key Levels to Watch as Rebound Signals Strength

Gold holds firm at $3,260 support while silver eyes a major breakout above $32, setting up the next bullish move.

Gold and Silver Technical Analysis: Recovery Momentum Builds Amid Market Shifts

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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.

What’s Driving Gold and Silver Now?

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.

Gold (XAU/USD) Price Analysis

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.

Silver (XAG/USD) Price Analysis

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.

US Dollar Index (DXY) Technical Overview

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.

Final Thoughts

Gold (XAU) needs to defend $3,260 to maintain bullish momentum. A break above $3,400 would reignite the rally toward $3,500.
Silver (XAG) shows stronger technical structure, with a breakout above $35 likely to fuel fresh highs near $38.
A bearish dollar and weak U.S. economic data could further support gains in both gold and silver in the coming sessions.

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Yasher Rizwan