Gold (XAUUSD) and Silver Technical Analysis Ahead of Crucial US Labour Reports

Gold (XAU) prices are consolidating below $4,000 as investors await key U.S. private payroll data. This consolidation reflects uncertainty ahead of labour figures that could influence the Fed’s next rate decision. Despite the short-term pullback, the broader outlook remains bullish as investors continue to view gold as a safe hedge in a volatile policy environment.

Gold has dropped over 10% from its October peak of $4,380, but the move still reflects a healthy correction within a strong uptrend. As the market navigates this pullback, uncertainty surrounding US economic data has clouded short-term direction. With investors now looking to the upcoming ADP report and ISM data for clarity, expectations for a December rate cut have started to cool. The odds have since slipped below 70%, reflecting growing uncertainty in the market.

The October correction and current price patterns suggest that a seasonal cooling phase is underway. At the same time, underlying economic cracks and rising geopolitical uncertainties continue to support a bullish long-term outlook. This temporary pullback may present a timely buying opportunity for gold investors.

Gold Technical Analysis

XAUUSD Daily Chart – Ascending Broadening Wedge

The daily chart for spot gold shows that the price remains in correction mode and has failed to break above the key $4,000 level. This rejection signals the potential for a deeper correction. Immediate support sits near $3,850, which aligns with the 50‑day SMA. A break below this level could push prices lower toward the $3,700-$3750 region.

The RSI is now slipping below 50, showing weakening momentum and suggesting further short‑term downside. Despite this correction, the broader outlook remains bullish. Once the pullback is complete, gold will likely resume its upward move.

XAUUSD 4-Hour Chart – Ascending Broadening Wedge

The 4-hour chart for spot gold shows a break below the ascending broadening wedge pattern, triggering strong consolidation. The price is now holding near the key $3,900 support level, but it appears to be weak. A break below $3,900 will likely open the path toward $3,720, which is a long-term support zone.

Silver Technical Analysis

XAGUSD Daily Chart – Correction

The daily chart for spot silver (XAG) shows that the price failed to break above $49.30 and started a sharp correction. A break below the $45 level will likely trigger a deeper move toward the $41–$42 region. However, the overall trend remains strongly bullish. This pullback appears to be a typical correction from extremely overbought conditions in the silver market.

XAGUSD 4-Hour Chart – Test of Ascending Broadening Wedge

The 4-hour chart for spot silver shows that prices broke below the ascending broadening wedge near the $48 region and found strong support around $46. A rebound followed from the $46–$48 zone, pushing prices to retest the $49.30 resistance along the wedge’s upper boundary.

However, silver failed to break above this level and entered a consolidation phase. A clear break below the $45 area will likely trigger a deeper correction toward the $41–$42 support zone.

US Dollar Index Technical Analysis

US Dollar Daily – Test of 200-Day SMA

The daily chart for the US Dollar Index shows that it is approaching strong resistance near the 100.50 level. This area also intersects with the 200-day SMA. A break above 100.50 will likely trigger a strong rally toward the 102 level. However, a break below 98 would signal further downside toward the 96.50 area.

US Dollar 4-Hour Chart – Consolidation

The 4-hour chart for the US Dollar Index shows that the index is approaching the upper boundary of its consolidation range between 96.00 and 100.50. It is now nearing the 100.50 level, a technically strong resistance zone. A break above this level could push the index toward the 102 area.