Gold and Silver Technical Analysis: Holiday Season Builds Energy for a 2026 Surge

Gold (XAUUSD) and silver (XAGUSD) prices continue to build positive energy during the holiday season to produce a strong surge in 2026. The gold price is looking to go towards the $5,000 mark, while silver is building energy to surge towards $100. The precious metals market sentiment has turned aggressively bullish, with spot silver trading above $70/ounce. The silver 150% year-to-date surge has sparked a strong demand for the gold market. Both metals are viewed as crucial hedges in a volatile macro world.

The 2025 gold price boom was also caused by rising geopolitical risks and changing views on U.S. monetary policy. Fears of world instability are raised by the U.S.-led naval blockade of Venezuelan oil tankers and a new offensive in Nigeria. Meanwhile, President Trump has opened the door to a Fed chair who is more amenable to rate cuts. In the short to medium term, this scenario helps the gold and silver markets.

Gold Technical Analysis

The daily chart below shows that the price has breached above an ascending broadening wedge’s resistance line. Now, the price is forming a new ascending broadening wedge on the daily chart. This breakout signals very strong volatility within the bullish price structure.

The price has also broken above a new all-time high at $4380, which indicates a bullish continuation towards $5,000 level. However, the short-term RSI shows overbought conditions. These overbought conditions may form the catalyst for a short-term pullback. If this pullback develops, it will be viewed as an attractive buying opportunity by traders.

The 4-hour chart of spot gold indicates that the price has broken from the ascending triangle pattern near the $4,380 level. Following the breakout, the market traded above the $4,500 level and is now consolidating in the vicinity of the record highs from the Christmas weekend. Therefore, a retest of $4,380 could provide a solid buying opportunity for investors. Overall, the prices will continue to rise in the following days and weeks.

Silver Technical Analysis

The daily chart below for spot silver shows the sizeable bullish standpoint with an Adam and Eve and an Inverted head and shoulders pattern. When a cup and handle pattern broke above $54.50, the silver price rallied significantly and jumped to the $70 level. This sharp move has taken the price into overbought condition. However, the momentum in the silver market is strong, and the bigger structure still points to more upside.

The short-term target for silver is inspired by the development of the ascending broadening wedge pattern. This target would likely form between $85 and $90 levels. The target may increase with time as the price goes upward. The silver price is projected to remain in bullish mode for January 2026.

US Dollar Technical Analysis

The US dollar index tries to keep its bearish bias below the level of 100.50. The index is now consolidating around the $97.50 support. A breach of this level could lead the index towards 96.50. However, if the index breaks below 96.50, a strong drop towards $90 level may develop.

Moreover, the 4-hour chart also shows bearish price action in the US dollar index. The index has broken the level of 99 and indicates further downside. The break from the 99 level after forming a double top pattern indicates further downside towards the 96.50 level.