Gold and Silver Technical Analysis: Record Breakouts Signal Strong Upside Into 2026

Gold (XAUUSD) price surged to $4,390, marking a new record level on Monday during the Asian trading session. This rally came despite a rebound from the U.S. Dollar and rising Treasury yields, which usually weigh on non-yielding assets like gold. The move reflects strong safe-haven demand as the week closes amid thin holiday trading.

The chart below shows that the University of Michigan’s current economic condition index dropped to 50.4 in December. The survey participants expect unemployment to rise, and durable goods spending continues to fall. These signs of economic weakness lifted gold, as investors positioned for slower growth and possible Fed easing in 2026.

Moreover, comments from New York Fed President John Williams added to policy uncertainty, as he ruled out any urgency to change policy while adopting a less dovish tone. Combined with mixed inflation signals, this uncertainty continues to drive gold toward record levels.

Gold Technical Analysis

The daily chart for spot gold indicates that the price is attempting to break out of the ascending triangle pattern near the $4,380 level. This breakout is significant and could open the door for upside momentum toward the $5,000 mark.

The RSI is now rising above 70, signalling strong bullish momentum. Despite being in overbought territory, the momentum remains bullish. Additionally, both the 50-day and 200-day simple moving averages indicate continued upward strength in the gold market.

The 4-hour chart for spot gold indicates that the price is now testing the horizontal resistance level at $4,380, following the formation of a bullish price structure above $4,000. A confirmed breakout above this resistance could trigger a strong upside move in early 2026.

Silver Technical Analysis

The daily chart for spot silver (XAGUSD) indicates that silver remains the leader of the broader metals market and has approached the $70 level. The formation of a cup-and-handle pattern, followed by an ascending broadening base, indicates strong volatility accompanied by positive momentum. The price is now heading toward the $100 level as bullish momentum continues to build in early 2026.

The short-term price action for the silver market also suggests continued bullish momentum, supported by the formation of consistent upward patterns. Short-term support remains at the $65 level, and holding above this zone would likely signal further upside toward the $75 area.

US Dollar Technical Analysis

The daily chart for the U.S. Dollar Index (DXY) shows strong consolidation below the 200-day SMA. The price is currently rebounding from the key support at the 98 level, but strong resistance remains near the 200-day SMA at 99.

A break below 98 would suggest further downside toward the 96.50 area. Conversely, a breakout above 100.50 would invalidate the bearish outlook and signal further upside potential toward the 102 level.

The 4-hour chart for the U.S. Dollar Index shows the formation of a double top pattern near the 100.50 level. Continued rejection at the 99 resistance zone would likely maintain downward momentum.

A confirmed break below the 98 level is needed to push the index toward 96.50. On the other hand, a breakout above 100.50 would shift the outlook to bullish, with potential upside toward the 102–103 zone. Global uncertainty is pushing the U.S. Dollar into bearish territory. A break below the 96.50 level would signal a sharp decline toward the 90 zone.