Gold and Silver Technical Analysis: XAUUSD Triangle and XAGUSD Cup Patterns Signal Upside

Gold (XAUUSD) prices rally on Friday as escalating trade tensions triggered a risk-off sentiment across markets. President Trump’s 35% tariffs on Canadian goods and plans to expand duties to other countries and copper imports triggered renewed market fears. As a result, safe-haven demand for gold increased, pushing gold above $3,360.

Despite a rebound in the US dollar, gold remains strong as traders weigh the implications of further tariffs and geopolitical friction. The announcement of 50% tariffs on copper and additional duties on Brazilian goods added fuel to fears of a broader trade conflict. These developments overshadowed a quiet economic calendar, keeping gold supported even as the US Dollar Index posted its strongest weekly gain since February.

The market is waiting for the upcoming inflation and retail sales data, which could influence gold’s next move. The CPI and core inflation readings are expected to rise modestly, potentially dampening expectations for aggressive Fed easing. However, persistent trade risks and global uncertainty may continue to support gold prices in the near term, especially if upcoming data signals economic strain.

Gold Technical Analysis

XAUUSD Daily Chart – Ascending Triangle Pattern

The daily chart for spot gold shows that the price has rebounded from the support of the ascending triangle. Multiple bullish hammer patterns at this support level indicate strong bullish price action. A break above $3,450 is likely to trigger a sharp surge in gold prices toward the $3,750 level. Moreover, the price has moved back above the 50-day SMA. The RSI has also climbed above the mid-level, signaling that the price is poised for further upside.

XAUUSD 4-Hour Chart – Upside Potential from Uncertain Zone

The 4-hour chart for spot gold shows that the price has built a positive structure above the $3,250 level. A break above $3,370 will initiate a move toward the $3,430 region. Moreover, a break above $3,430 will likely push the price toward the $3,500 area.

Silver Technical Analysis

XAGUSD Daily Chart – Breakout from Cup Pattern

The daily chart for spot silver (XAGUSD) shows that the price has broken above the $35 area and then also cleared the $37 level. The $37 level served as the neckline of a cup pattern, and the breakout from $35 led to the formation of this bullish setup. The breakout above $37 has opened the door for a potential move toward the $40 area in spot silver.

XAGUSD 4-Hour Chart – Bullish Momentum

The 4-hour chart for spot silver shows that the price has built a positive structure above the strong $34.50 support level and has broken above the $37 area. The continuous rally from the $28.50 support level has formed a bullish price structure, indicating strong upward momentum.

However, the short-term price action has reached an extremely overbought level, as indicated by the RSI, suggesting a potential short-term correction. This correction is likely to be followed by another strong rally in silver prices. However, the strength in silver prices indicates that corrections will be limited.

US Dollar Index Technical Analysis

US Dollar Daily – Rebound

The daily chart for the US Dollar Index shows a strong bearish price pattern. It has formed a head-and-shoulders formation. The price rebounded from long-term support near the 96 level. This rebound is pushing the index toward the 98–99 resistance area. As long as the index remains below the 99 level, the broader trend is likely to continue lower.

US Dollar 4-Hour Chart – Descending Channel

The 4-hour chart for the US Dollar Index shows that it is trading within a descending channel and is now breaking above the channel’s resistance area. However, as long as the index remains below the 100.50 level, the overall trend is likely to remain bearish.