Gold and Silver Technical Analysis: U.S. Dollar Weakness Supports Fresh Rally

Gold (XAU) and silver (XAG) rose on Wednesday as the weak U.S. dollar boosted the demand for precious metals. Spot gold increased to $4,645, while silver jumped to $74.80. The US dollar index dropped to 98.30 which supported the demand for both metals. Silver was more positively correlated as it tends to rise more rapidly when risk appetite improves and the US dollar depreciates.

The drop in oil prices also supported the gold price. When oil prices drop, it reduces the fears of high inflation in the economy. This is important because high inflation rates can compel the Federal Reserve to maintain high interest rates. The higher rates put negative pressure on gold as the investors can generate returns on their investments via bonds and cash. Thus, with oil prices easing and the prospects of peace improving, gold was supported by the reduced inflationary pressure and a weaker dollar.

The U.S.-Iran peace outlook is the most important driver of gold and silver. The move by Trump to halt the ship-escort operation in the Strait of Hormuz lowered the geopolitical risk premium in oil. This helped the metals in the short run but the market is sensitive. If the tensions again escalate, the short-term traders might engage in profit-taking. If the labour market weakens in the next U.S. jobs data, then hopes of rate cuts may return and support a push higher in the gold and silver markets.

Gold Technical Analysis – Consolidation Points to a Bigger Move

The daily chart for spot gold shows that the price found support at $4,500 and rebounded higher towards $4,650. The chart highlights the $4,400 to $4,500 region as the decision zone in the spot gold market. A break above $4,650 will signal a strong move towards the $4,800 level, which is the 50-day SMA.

The resistance at the $5,000 area was rejected on 17 April 2026, which triggered a correction back towards the decision zone of $4,500. However, a breakout above $4,800 this time will increase the likelihood of an upside breakout above $5,000.

Overall, the price is consolidating between $4,500 and $5,000. A break of this range is required to identify the next move in the gold market.

The 4-hour chart for spot gold also shows this short term consolidation above the decision zone area. Overall, the price structure remains strongly bullish, but a break above $5,000 is required to keep the bullish momentum in the gold market.

Silver Technical Analysis – Bullish Momentum Builds Above Support

The daily chart for spot silver shows strong rebound from $72, which suggests a continuation towards $80 in the short term.

The formation of a bullish hammer candle on 23 March 2026 at the major support region followed by consolidation above $72 indicates that the silver price is strengthening and preparing for the next big move.

A break above $80 will indicate a move towards $90. A break above $90 will introduce a move towards the $95 area.

The 4-hour chart for spot silver also shows strong consolidation at the support zone of the ascending broadening wedge pattern. The price remains bullish above the $60 region. The consolidation above $72 indicates that the price is building bullish momentum in the short term.

A break below $72 will introduce a further drop towards the $60 area. However, a break below $60 will indicate further downside towards $50. As long as the silver price remains above $50, the next move in the silver market will likely be higher towards the $100 region.

Bottom Line

The gold and silver rebounded higher due to a decline in U.S. dollar, a drop in oil prices and an increasing possibility of a U.S.-Iran peace agreement. Gold is continuing to consolidate within the range of $4500 to $5000.

On the other hand, silver is consolidating above $72. The second significant step will be based on the U.S. jobs data, Fed rate expectations and the course of the oil prices. Any break in gold and silver above $4,800 and $80, respectively, would enhance the bullish argument. But any new escalation in the Middle East or a stronger dollar would lead to short-term profit-taking. In the meantime, the bigger picture is bullish, and buyers are still active around the main support levels.

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