Gold (XAUUSD) and Silver Technical Analysis: Metals Stabilize as Fed Uncertainty Grows

Gold (XAU) price consolidates around $4,000 and remains strong as investors seek safety from policy uncertainty. The high inflation and slowing job growth have raised concerns about the Fed’s interest rate decisions, leading to increased volatility in financial markets. Despite expectations of a slight improvement in US–China relations, gold remains near its base at $4,000. Meanwhile, the US dollar has hit strong resistance at the 100.50 level.

Fiscal and monetary uncertainties keep the greenback under pressure, even as short-term optimism lifts equities. Stronger gold prices and weaker economic data suggest that the US dollar may struggle to maintain its support. As long as the Fed maintains a dovish stance and economic cracks widen, gold is likely to continue outperforming the dollar.

Gold Technical Analysis

XAUUSD Daily Chart – Ascending Broadening Wedge

The daily chart for spot gold shows that the price pulled back after briefly surging above the strong resistance near the $4,200 area. This extension has brought the price back toward the $4,000 region. It is now consolidating below that level, potentially forming a bottom.

If spot gold holds above the $3,900 support zone, the likelihood of an upside continuation increases. A confirmed break above $4,200 would signal further strength in the gold market. Additionally, the RSI is consolidating around the mid-level, indicating underlying price strength.

XAUUSD 4-Hour Chart – Positive Consolidation above $3,900

The 4-hour chart for spot gold shows that the price has broken below the ascending broadening wedge pattern and is forming a bottom near the $3,900 support level. Currently, the price is consolidating above the black dotted trendline in the $3,900 area. However, if it fails to break above $4,050 and drops below $3,900, further downside may follow, potentially reaching the $3,720 region.

Silver Technical Analysis

XAGUSD Daily Chart – Rebound from 50-Day SMA Support

The daily chart for spot silver shows strong support around the $45 level, near the 50-day SMA, with the price consolidating below the key resistance at $49.30. A breakout above $49.30 could lead to a move toward $52.

However, if the price breaks below $45, it may decline further toward the $42 area. This correction follows extremely overbought conditions, as indicated by the RSI, suggesting a cooling phase before the next upward move.

XAGUSD 4-Hour Chart – Consolidation

The 4-hour chart for spot silver shows that the price has broken below the ascending broadening wedge pattern and retested the breakout near the $49.30 level. The ongoing consolidation below $49.30 increases uncertainty, and the price appears to be searching for direction.

A break below $45.80 would trigger further downside toward the $41.50 area. However, a break above $49.30 would signal additional upside toward the $52-$53 region.

US Dollar Index Technical Analysis

US Dollar Daily Chart – Key Resistance at 200-Day SMA

The daily chart for the U.S. Dollar Index shows strong resistance at the 100.50 level. After testing this resistance near the 200-day SMA, the index began to correct lower. Immediate support lies at the 50-day SMA, around 98.50. A break below this level could trigger a further decline toward 96.50.

Overall, the U.S. Dollar Index is showing strong consolidation between the 96 and 100 range, as the market awaits its next directional move.

US Dollar 4-Hour Chart – Consolidation

The 4-hour chart of the U.S. Dollar Index shows strong price consolidation between the 96.50 and 100.50 levels. A break below 99.20 could trigger further downside towards 98.60. Moreover, a break below 98.60 will trigger further decline to the 96.50 level.