Gold, Silver, US Dollar Forecast: Essential Chart Patterns Prior to US Jobs Report

Gold and Silver Market Insights

Gold (XAU) and Silver (XAG) prices have remained in tight consolidation throughout the week. Meanwhile, the US dollar has found support and continued to trade higher. The recent rise in the US Services PMI to 54.9 from 51.5 in August exceeds the forecast of 51.7; however, the US dollar remained muted after this release as the market awaits the pivotal US jobs data report on Friday. This data is likely to spark significant volatility for the US dollar, impacting gold and silver prices.

US Dollar Technical Analysis

US Dollar Daily Chart Patterns

The US Dollar Index has been trading within a triangle pattern since July 2023, which was broken in August 2024. After the breakout, the index consolidated and initiated a rebound from the 100.15 level. This rebound drives the index toward the 50-day SMA, the first resistance. A stronger resistance lies at the red trendline at 102.50, where the index previously broke down. The trend remains bearish while the index stays below the 200-day SMA.

US Dollar 4-Hour Chart Patterns

The 4-hour chart of the US Dollar Index shows a falling wedge pattern. Following the breakout, the index exceeded the wedge’s resistance at the black dotted line. After surpassing this line, the index may seek a price correction, supported by the RSI indicating short-term overbought conditions.

Gold Technical Analysis

Gold Daily Chart Patterns

The gold market has been consolidating within tight ranges, forming an inside bar pattern. A breakout above key levels could trigger robust upward movement. The price remains above the 20 and 50 SMAs, indicating a strong uptrend. The yellow dotted trendline intersects with the 20 SMA at strong support, positioned at $2,606.

Gold 4-Hour Chart Patterns

The 4-hour chart reveals a strong uptrend in the gold market identified through a rising channel pattern. After the release of the US ISM Services PMI, gold prices rebounded from the midline of this channel, exhibiting strong support at $2,590 and resistance at $2,700.

Silver Technical Analysis

Silver Daily Chart Patterns

Silver has formed an inverted head and shoulders pattern, with the neckline at $32.50. Price consolidation below this neckline indicates strength, elevating the likelihood of an upward breakout. Furthermore, prices are trending above the 20 and 50 SMAs. A breakout above $32.50 could catalyze the next bullish move.

Silver 4-Hour Chart Patterns

The 4-hour chart indicates an upward trend in the silver market through a rising channel. Recently, silver prices have pushed toward the upper resistance and exceeded the resistance line but subsequently pulled back. As the US Nonfarm Payroll data release approaches, elevated volatility may incite a breakout supported by the inverted head and shoulders pattern.