Gold and Silver Technical Analysis: Key Support Holds Amid Rising Volatility
Author: Muhammad Umair
Published: February 06, 2026
Market Overview
Gold prices have recently dropped to approximately $4,680 due to rising margin requirements, stress in the equity markets, and easing geopolitical tensions. However, strong technical support around $4,400, combined with ongoing uncertainty regarding Federal Reserve policy and the strength of the US Dollar, may provide a basis for a bullish rebound.
Gold Price Dynamics
In early trading, gold's decline was influenced by forced selling as traders adjusted their positions in response to losses in the stock market. The CME Group's increase in margin requirements for gold and silver futures has made it more expensive for traders to maintain their positions, leading to additional selling pressure.
Moreover, the diminishing safe-haven appeal of gold is attributed to signs of reduced geopolitical tensions, particularly between the US and Iran. Despite this, uncertainty surrounding the Federal Reserve's future policy direction remains, especially following comments from the US President that could undermine the Fed's independence, potentially weakening the US Dollar and supporting gold prices in the near term.
Technical Analysis of Gold
Daily Chart Insights
The daily chart indicates that gold has experienced a rapid decline from $5,600 to $4,400, followed by a rebound due to strong support at the latter level, which coincides with the 50-day Simple Moving Average (SMA) and the support line of an ascending broadening wedge pattern. The Relative Strength Index (RSI) is also at the 50 level, suggesting potential for a recovery if prices rise above $5,050. Conversely, a break below $4,400 could lead to further declines.
4-Hour Chart Analysis
The 4-hour chart reinforces the presence of strong support around $4,400, marked by a black dotted trend line of the ascending triangle pattern. A bullish breakout above $4,500 could lead to a surge towards $5,600, indicating significant volatility in the gold market.
Silver Market Analysis
Daily Chart Observations
Silver prices have found strong support around $65, with the $65 and $55 levels acting as critical support zones. As long as these levels hold, silver is expected to trend higher.
4-Hour Chart Insights
The 4-hour chart for silver shows trading within an ascending broadening wedge pattern between $60 and $100. As the price approaches the $60 support level, the likelihood of a strong rebound increases, maintaining a bullish outlook for silver.
US Dollar Technical Analysis
Daily and 4-Hour Chart Insights
The US Dollar Index is currently consolidating between 96.50 and 100.50. The 50-day SMA is below the 200-day SMA, indicating uncertainty in the index's direction. A break below 96.50 could lead to a significant drop towards the 90 area, while a break above 100.50 would negate bearish patterns and suggest further upside potential.
Conclusion
Overall, the technical structures for both gold and silver remain bullish, with key support levels holding firm amid rising volatility. Traders are advised to monitor these levels closely as market conditions evolve.