Gold and Silver Technical Analysis: Bullish Structure Holds as Volatility Limits Breakout
Published: December 31, 2025
Spot gold is currently trading above $4,300 after a recent pullback from record highs, while silver has seen a correction after reaching $84. The U.S. Dollar Index remains in a structurally bearish position.
Gold Analysis
Spot gold (XAU) has formed a support level at $4,300, initiating a rebound that has pushed prices above $4,350. However, the holiday season has resulted in thin liquidity, contributing to price uncertainty. Despite this, the overall outlook for gold remains bullish.
The daily chart indicates that gold is consolidating around the support of an ascending broadening wedge pattern, which previously broke out from an ascending triangle. A break below $4,300 could lead to a more significant correction towards the $4,200-$4,000 range. Conversely, a break above $4,400 would confirm continued upward momentum.
On the 4-hour chart, gold has fallen from its record high of $4,550 and is currently consolidating at support. A drop below $4,300 may see prices head towards $4,260, while a rebound above $4,400 would signal further upside potential.
Silver Analysis
Spot silver (XAG) has experienced a significant drop after testing resistance at $84. The price is now approaching a strong support level, with major support identified between $60 and $65. As long as silver remains above $60, the bullish trend is expected to continue.
The daily chart shows that silver's price action reflects strong volatility, with the 4-hour chart confirming the presence of a bullish trend. If the correction deepens, prices could extend to the $55 region, but as long as the support level holds, the market is anticipated to trend upwards.
U.S. Dollar Index Analysis
The U.S. Dollar Index (DXY) is currently trading in a weak price zone, primarily due to thin liquidity during the holiday period. The index is below both the 50-day and 200-day simple moving averages (SMAs), indicating a bearish structure. Key long-term support is near the 96.50 level, and a break below this could lead to further declines towards the 90.00 area.
The 4-hour chart reveals a double top formation around the 100.50 level, with a breakdown below 99.00 triggering negative price action. A further decline below 97.50 would indicate a move towards the 96.50 support zone, maintaining a bearish trend as long as the index remains below 100.50.
Conclusion
In summary, both gold and silver are currently in a consolidation phase after recent highs, with bullish structures intact as long as key support levels hold. The U.S. Dollar Index remains bearish, which could continue to support precious metals in the near term.