Gold (XAU) and silver (XAG) prices remain under pressure in early Asian trading on Friday. Gold trades near $4,150 an ounce while silver consolidates around $60.40. The US dollar index broke the key resistance at 101.80 and reached a near 17-month high at 102.08. The formation of a V-shaped recovery in Q1 2026 and then the double bottom in August and September suggests a positive move in the short term. The strong rally in US dollar keeps both metals under pressure ahead of the US jobs reports.
Fresh comments from the Fed add another challenge. Dallas Fed President Lorie Logan said that interest rates need to rise by at least another 50 basis points. She warned that inflation may not fall much below 2.5% without further increases. Her comments keep the risk of more tightening alive. Strong jobs data or growth in wages could reinforce that view. But the weaker figures could give gold and silver some room to recover.
Oil prices also edged higher on Friday with Brent oil over $105 a barrel. The market weighed reports of additional US troops and another aircraft carrier heading to the Middle East. The risk of further disruption of supply keeps inflation concerns in focus. This creates a mixed outlook for precious metals.
The fears of conflict can attract buyers to gold but high fuel costs could delay relief from tight monetary policy. Silver could also face weaker industrial demand if rising costs slow factory activity. In my view, a softer dollar would improve the chances of a lasting recovery in both metals.
Gold Price Forecast: $4,100 Support at Risk Below $4,300
The daily chart for spot gold shows that the price remains under bearish pressure below $4,300 and looks for further downside. The price structure is forming a descending broadening wedge pattern from the highs of January 2026.
A break below $4,100 will likely push the gold price towards the $3,900 to $4,000 area. On the other hand, a recovery above $4,300 will likely introduce further upside towards the $4,500 level. As long as the price remains below $4,300, the possibility of further downside towards the $4,000 area is high.
The 4-hour chart for spot gold also shows strong consolidation in the short term. The immediate resistance remains at $4,300, while $4,100 remains the important support. A break of either of these levels will likely define the next move in the gold market. The RSI remains below the midline on the 4-hour chart, which suggests negative price action in the short term.
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See all Gold forecastsSilver Price Forecast: $60 Support in Focus as Downside Pressure Builds
The daily chart for spot silver shows that prices remain under bearish pressure after hitting resistance in the $72 area at the 200-day SMA. The price has already broken below the 50-day SMA and pushed into the primary support region of $55 to $64.
As long as the price remains within this region, prices may consolidate. However, a break below $55 will likely open the way for further downside towards the $45 area. Overall, the $45 to $55 range remains the support zone in the long term. A bottom formation process around these levels will likely prepare the market for the next strong rally.
The 4-hour chart for spot silver also shows strong consolidation between $62 and $60 before the US jobs data. A break below $60 will open the way for a further drop towards the $55 area. On the other hand, a recovery above $62.60 will open the way for further upside towards the $67 region.
What Is Next for Gold and Silver Prices?
Gold and silver prices remain under pressure as a strong US dollar and rising costs of fuel limit their recovery. The US jobs report could shape the next move in metals. Strong hiring or growth in wages could reinforce the case for further tightening by the Fed. A break below $4,100 could push gold toward $3,900 to $4,000. Silver could fall towards $55 if it breaks the $60 support. Weaker jobs data and softer dollar could ease pressure on both metals. Gold needs to reclaim $4,300 to improve the outlook, while silver needs to break above $62.60 to support a strong recovery.
Read more: High Yields Raise the Risk of a Deeper Correction in Gold
