Gold and Silver Technical Analysis: Upside Signals Amid Market Tensions
Published: July 14, 2025
Author: Muhammad Umair
Key Highlights
- Gold (XAU/USD) shows bullish patterns at the support of an ascending triangle.
- Silver (XAG/USD) breaks above the neckline of a cup pattern at $37.
- The US Dollar Index (DXY) rebounds from long-term support near 96.50.
Market Overview
Gold prices rallied as escalating trade tensions, particularly President Trump's tariffs on Canadian goods and potential duties on other imports, created a risk-off sentiment in the markets. This led to increased safe-haven demand for gold, pushing its price above $3,360. Despite a rebound in the US dollar, gold remains strong as traders assess the implications of further tariffs and geopolitical tensions.
The announcement of additional tariffs on copper and Brazilian goods has heightened fears of a broader trade conflict, overshadowing a quiet economic calendar. The market is now anticipating upcoming inflation and retail sales data, which could influence gold's trajectory. Expectations for modest increases in CPI and core inflation may temper aggressive Federal Reserve easing, but ongoing trade risks and global uncertainty are likely to support gold prices in the near term.
Gold Technical Analysis
Daily Chart Insights
The daily chart for gold indicates a rebound from the ascending triangle's support, with multiple bullish hammer patterns suggesting strong bullish momentum. A break above $3,450 could trigger a significant price surge towards $3,750. Additionally, the price has moved above the 50-day Simple Moving Average (SMA), and the Relative Strength Index (RSI) has climbed above the mid-level, indicating potential for further upside.
4-Hour Chart Insights
The 4-hour chart shows a positive structure above the $3,250 level. A break above $3,370 could initiate a move towards the $3,430 region, with further gains likely if the price surpasses $3,430, targeting the $3,500 area.
Silver Technical Analysis
Daily Chart Insights
The daily chart for silver reveals a breakout above the $35 area, clearing the $37 level, which served as the neckline of a cup pattern. This breakout opens the door for a potential move towards the $40 area.
4-Hour Chart Insights
The 4-hour chart indicates that silver has established a positive structure above the strong $34.50 support level, with a breakout above $37. The rally from the $28.50 support level has formed a bullish price structure, although the RSI indicates that the price is currently overbought, suggesting a potential short-term correction before another rally.
US Dollar Index Technical Analysis
Daily Chart Insights
The daily chart for the US Dollar Index shows a bearish price pattern with a head-and-shoulders formation. The index has rebounded from long-term support near the 96 level, pushing towards the 98–99 resistance area. However, as long as it remains below the 99 level, the broader trend is likely to continue downward.
4-Hour Chart Insights
The 4-hour chart indicates that the US Dollar Index is trading within a descending channel and is breaking above the channel’s resistance area. Nevertheless, as long as it stays below the 100.50 level, the overall trend is expected to remain bearish.
Conclusion
The analysis suggests a bullish outlook for both gold and silver, driven by market uncertainties and trade tensions. Traders should monitor key resistance levels and upcoming economic data that could influence price movements in the precious metals market.