Gold (XAUUSD) and Silver Technical Analysis: Bullish Momentum Builds Ahead of Breakout

Gold (XAUUSD) is trading near $3,350, showing resilience despite hawkish comments from Fed Chair Jerome Powell. The ISM Manufacturing PMI printed at 49.0 for June, beating the forecast of 48.8. Moreover, JOLTS data surprised markets with 7.769 million job openings versus the expected 7.3 million. However, 10-year Treasury yields continue to decline amid rising political uncertainty, which supports the price of gold.

President Trump’s aggressive comments against Powell added fuel to market volatility. These comments raise concerns about the Fed’s independence. Markets now expect a potential shift in policy tone or leadership. That uncertainty has pushed real yields lower and increased demand for gold as a hedge.

Trump’s proposed “Big Beautiful Bill,” with its $3.3 trillion deficit impact, has sparked fears of long-term inflation. Elon Musk and other prominent voices warn that the proposal could weaken the US Dollar. These risks often prompt investors to turn to gold as a safe haven. Meanwhile, the July 9 tariff deadline adds pressure. The US is pursuing piecemeal trade deals but faces unresolved issues with Japan and the EU. Trump has warned Japan over rice imports and hinted at new tariffs. These uncertainties keep market sentiment fragile, supporting gold’s upside.

Gold Technical Analysis

XAUUSD Daily Chart – Bullish Hammer within Ascending Triangle

The daily chart for spot gold shows that the price has rebounded from the strong support of the ascending triangle and formed a bullish hammer. However, the price remains in strong consolidation, and the moves are not reliable until a break above $3,450 occurs. A break above $3,450 will initiate a strong surge in gold prices.

XAUUSD 4-Hour Chart – Consolidation

The 4-hour chart for spot gold shows that the price has rebounded from the $3,250 area, a strong support zone. This rebound was significant and indicates ongoing price consolidation. As long as the price remains below the $3,430 level, consolidation is likely to continue. A break below $3,230 would signal further downside.

Silver Technical Analysis

XAGUSD Daily Chart – Consolidation after Breakout

The daily chart for spot silver (XAGUSD) shows that the price has formed an Adam and Eve pattern, a strongly bullish formation. This pattern has developed above the bull-bear line. Strong support is evident near the $28 area, followed by positive consolidation between $31.60 and $33.60, and a breakout above $35.00, all of which indicate strong bullish price action in silver. A break above $37.00 will likely trigger a sharp move toward the $40.00 level.

XAGUSD 4-Hour Chart – Bullish Momentum

The 4-hour chart for spot silver shows that the price is consolidating above the orange zone near the $34.50 area. This strong consolidation indicates positive price development. A break above $37.00 will likely initiate a strong upside move.

US Dollar Index Technical Analysis

US Dollar Daily – Bearish Pressure

The daily chart for the US Dollar Index shows that the index remains under strong bearish pressure. It is approaching the 96.00 area, a key level that could trigger the next major downward trend. Any rebound from this level is likely to be limited, and a break below 96.00 would confirm further downside. The emergence of a head and shoulders pattern below 105.20 also suggests that the index may continue to trade 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 continues to move lower. Strong support lies at the 94.50 level. A break below this level would likely initiate a move toward the 90.00 area.