Gold and Silver Technical Analysis: Gold Breakout Gains Momentum as Silver Eyes $72

Key Points

• Treasury bond buybacks support gold and silver prices.
• Gold’s breakout above $4,400 puts the $5,000 area in focus.
• Silver must break above $72 to open the path toward $90.

Market Overview

Gold (XAU/USD) price rose toward $4,540 as the U.S. Treasury announced plans to increase purchases of longer-dated bonds, potentially exceeding $4 billion. This move is expected to ease pressure on long-term yields and lower borrowing costs, making gold more attractive as a non-yielding asset. The decrease in yields is also likely to boost demand for silver (XAG/USD), which typically follows gold during significant rallies.

However, rising energy prices pose a risk, as they could sustain inflation and prompt the Federal Reserve to consider further rate hikes. Currently, there is a 36.2% chance of a rate hike in the next meeting, down from 45% a month ago. While easing rate hike expectations have supported gold and silver prices, renewed expectations could limit their rally.

Gold Technical Analysis

The daily chart indicates that gold has broken above $4,400 and closed above the 200-day Simple Moving Average (SMA). This positive momentum suggests that gold may continue to perform well in the short term, with potential targets in the $4,850 to $5,000 range. The Relative Strength Index (RSI) is currently at 67, indicating strong momentum.

On the weekly chart, the rebound in gold prices occurred at the support of an ascending trend line, with a positive weekly candle indicating sustained upside movement. The immediate target remains the $4,850 to $5,000 area, which corresponds to the April 2026 highs.

Silver Technical Analysis

Silver has also shown strong price action after breaking above $64. The price is currently consolidating within a primary support zone between $55 and $64, with a focus on breaking the $72 resistance level, which is also marked by the 200-day SMA. A breakout above $72 could trigger a rally towards the $90 area, marking the May 2026 highs.

The 4-hour chart confirms that silver has broken above a descending wedge pattern, indicating an immediate move towards the $72 resistance. A successful break above this level would suggest a sustained move towards $90.

Conclusion

Both gold and silver maintain a positive outlook in the short term, supported by Treasury bond buybacks that ease pressure on long-term yields. Gold has strengthened above $4,400 and could test the $4,850 to $5,000 area, while silver remains strong above its primary support zone and must break $72 to target $90. However, higher energy prices could keep inflation elevated and revive expectations of another Fed rate hike, which may limit the rally. Despite these risks, current price action favors further gains in both metals.