Gold (XAUUSD) and Silver Technical Analysis: Fed Easing Fuels Upside Momentum

Gold (XAUUSD) prices rallied to $4,326 in early Asian trading, extending gains to their highest level since late October. The move reflects rising expectations that the Federal Reserve will cut interest rates in 2026. Silver (XAGUSD) is also benefiting from the rate-cut narrative, though its price action remains volatile. Silver has broken above historical record levels and continues to lead the precious metals rally. The technical breakdown in the gold-to-silver ratio further supports this surge in silver.

However, any hawkish comments from upcoming Fed speeches could slow the rally and trigger a pullback. Moreover, ongoing geopolitical tensions and weak labour data continue to support safe-haven demand. The market is also awaiting the delayed NFP report on Tuesday for further momentum in the precious metals. A weaker report could reinforce dovish expectations and fuel another leg higher in both gold and silver.

Gold Technical Analysis

The daily chart for spot gold shows that the price has rebounded from the $4,200 region and reached a strong resistance zone between $4,350 and $4,380. The price remains within an ascending broadening wedge pattern and has approached near all-time highs within this formation, awaiting its next directional move.

A break below $4,200 would likely trigger a sharp downside correction, while a breakout above $4,380 would open the door for further upside momentum. The RSI is rising from the mid-level of 50, indicating ongoing bullish momentum in the gold market.

The 4-hour chart for spot gold shows that the price broke above $4,260 after forming a rounding bottom, indicating bullish price action. The price then retraced back toward the breakout level of $4,260 and is now consolidating at a higher level, which suggests that bullish momentum remains intact.

A break below $4,260 would be the first sign of weakening momentum and could trigger a further decline toward the $4,150 level. However, as long as the price holds above $4,100, the gold market is likely to remain supported and trend higher.

Silver Technical Analysis

The daily chart for spot silver shows that the price has broken above the $54.50 level after forming a cup-and-handle pattern. It surged higher to register a new all-time high at $64.50 before pulling back.

The sharp volatility following the breakout above the long-term resistance at $50 suggests continued price swings in the coming days and weeks. A decisive break above $65 would likely trigger the next leg higher toward the $100 zone.

The 4-hour chart for spot silver shows a strong bullish structure, with multiple bullish patterns forming during the ongoing uptrend. Recently, the price broke above the wedge pattern in the $58–$59 region, initiating a surge toward the $64 area. This sharp rally reflects heightened volatility, and a short-term correction may follow. However, any pullback is likely to be viewed as a buying opportunity for the next leg higher.

US Dollar Technical Analysis

The daily chart for the U.S. Dollar Index shows that the index failed to break above the 100.50 level and has since moved lower, remaining under bearish pressure. The 50-day SMA is now approaching the 200-day SMA, but with the index continuing to decline, the overall trend remains bearish.

A break below the 98 level would signal a further drop toward 96.50. On the other hand, a break below 96.50 would confirm a strong continuation of the downtrend toward the 90 level.

The 4-hour chart for the U.S. Dollar Index shows that it has formed a double-top pattern near the 100.50 resistance and has broken the neckline at the 99 level. A break below 98 would further confirm the bearish setup and signal a potential move toward the 96.50 area. Any short-term retracement back to the 99 level may present a selling opportunity for the U.S. Dollar Index.

Bottom Line

Gold and silver remain supported by easing rate expectations, a weakening U.S. dollar, and persistent demand for safe-haven assets. Gold is consolidating near key resistance while holding a bullish structure above critical support, keeping the upside bias intact. Silver continues to lead the rally after breaking record highs, despite elevated volatility. From a technical perspective, both metals are expected to surge higher due to the bullish price structure.