Overview
Gold prices have surged above the $4,400 mark during Asian trading on January 5, 2026, following a U.S. operation that led to the capture of Venezuelan President Nicolas Maduro. This unexpected geopolitical event has heightened tensions in Latin America and increased demand for safe-haven assets like gold.
Market Reactions
The market is reacting to fears of further instability in the region, with U.S. officials suggesting that oil could be leveraged for political change. This has prompted traders to flock to gold, anticipating prolonged uncertainty and risk premiums. Additionally, the Federal Reserve's dovish stance is supportive of gold prices, although strong U.S. jobs data could strengthen the dollar and temporarily cap gold's upward movement.
Technical Analysis of Gold
Daily Chart Insights
The daily chart indicates that gold is rebounding from a significant support level, characterized by an ascending triangle and an ascending broadening wedge pattern. A breakout above $4,550 could signal further gains towards the $5,000 level, while a drop below $4,260 would suggest a potential decline.
4-Hour Chart Insights
On the 4-hour chart, gold is consolidating with support at the $4,380 level. As long as it holds above $4,260, the outlook remains bullish, with expectations for higher prices.
Silver Price Analysis
Daily Chart Insights
Silver prices have corrected from a resistance level at $84, finding support at $70. The formation of this support suggests a potential upward movement, with long-term support identified between $60 and $64. If this support holds, silver could aim for the $100 mark.
4-Hour Chart Insights
The 4-hour chart shows silver consolidating within an ascending broadening wedge pattern, with strong support at $70. A breakout above $84 could trigger a significant rally towards $100.
US Dollar Index Analysis
Daily Chart Insights
The US Dollar Index is rebounding from the 97.50 support level, moving towards the 200-day SMA at 99. A confirmed break above 99 could lead to further gains, while a drop below 96.50 would indicate a bearish trend.
4-Hour Chart Insights
The 4-hour chart reveals a double top pattern at 100.50, with a potential downside move if it breaks below 97.50. Conversely, recovery above 100.50 would signal bullish momentum.