Gold and Silver Technical Analysis as Silver Breaks Out to Record Highs

The U.S. dollar rebounded to the 99.30 level, triggering strong consolidation in the gold market. Despite this, silver (XAG) has broken above $59 and continues to set new record highs. The sharp rally in silver has pushed the gold-to-silver ratio lower. This breakdown in the ratio signals renewed bullish momentum in both gold and silver markets.

The U.S. labour data surprised to the upside, indicating economic resilience. The chart below shows that job openings in September and October exceeded expectations. This strength reduces the urgency for aggressive Fed easing.

Moreover, the ISM Services PMI increased to 52.6% for November, which is well above the 48.6% breakeven level typical of past contractions.

Despite these strengths, the markets still expect a 25‑bps rate cut in December. However, Powell’s cautious tone and divisions within the committee suggest a slower approach to easing. Some Fed members remain concerned about sticky inflation. This mixed message supports gold (XAU) in the long term, as Fed hesitation keeps real rates low and market volatility elevated.

Moreover, the geopolitical risks continue to support demand for safe havens. The Russia-Ukraine conflict remains unresolved, with no progress on territorial disputes. Zelensky’s updated peace proposal adds to the noise but not the resolution. In this climate, gold exhibits underlying strength, while silver tracks shifts in both macro and industrial demand.

Gold Technical Analysis

The daily chart for spot gold indicates that the price is consolidating within an ascending broadening wedge pattern, supported by a strong level near $4,200. A break above $4,260 will push the price toward the $4,380 level.

The recent breakout from the symmetrical triangle also indicates that gold is preparing for its next move higher. A decisive break above $4,380 will signal a strong advance toward the $5,000 region. Moreover, the RSI has found solid support at the mid‑level. This suggests that bullish momentum is building in the gold market.

The 4-hour chart for spot gold shows that the price has found strong support at the rising trendline and is consolidating below the $4,260 level. A break above $4,260 would signal a strong move to the upside.

The repeated rebounds from the black dotted trendline indicate that the short‑term trend remains bullish. However, a break below $4,000 would negate the short‑term uptrend and open the door to further downside.

Silver Technical Analysis

The daily chart for spot silver shows that the price has broken above the $59 level and continues to surge higher, marking new record levels. This strength reflects a series of bullish price patterns that have formed over time.

The confirmed cup‑and‑handle formation above the $50 region also signals that the breakout at $50 was genuine, suggesting silver is likely to remain elevated in the coming months.

The 4-hour chart for spot silver shows that the metal has found strong support at the $45.80 level and broken above $54.40. A wedge pattern has formed above $55, indicating heightened volatility. The breakout above $59 signals a potential move toward $62 in the short term. If silver breaks above $62, it could open the door for further upside momentum.

Bottom Line

Gold and silver remain resilient despite short-term pressure from a stronger dollar and solid U.S. jobs data. Uncertainty in the Fed and persistent geopolitical risks continue to support safe-haven demand. Technical patterns signal bullish momentum in both metals. Since the silver is marking new record levels, the possibility of an upside breakout in gold has increased significantly.