Gold, Silver, AUD/USD Technical Analysis for CPI Week: Market Trends Unveiled

Market Analysis Ahead of CPI Data

The US released multiple employment-related reports throughout the week, signaling strong economic activity. The ADP report indicated the private sector added 143K new jobs in September 2024, while the Nonfarm Payroll (NFP) report showcased an increase of 254K new jobs. The unemployment rate fell to 4.1%, prompting the US dollar to surge, closing at higher weekly levels.

Gold (XAU) Technical Analysis

The bullish pennant pattern observed in gold consolidation persists ahead of CPI week. The price remains above the 20 and 50 SMAs, indicating a bullish trend. A break above $2,686 could spark upward momentum. Daily support levels are identified at $2,606 and $2,525.

Gold 4-Hour Chart – Rising Channel Pattern

The bullish pennant formation is confirmed on the 4-hour chart within a rising channel pattern. Despite volatility from the NFP release last week, the price holds above the midline of the channel, with support levels at $2,630 and $2,590.

Silver (XAG) Technical Analysis

Silver has faced resistance, attempting to breach the $32.50 mark for the second time but has not closed above it yet. A daily and weekly close above this level might ignite further upward momentum. Support levels are identified at $29.42 and $30.81, with
the RSI showing potential for upside.

Silver 4-Hour Chart – Rounding Bottom Pattern

Silver is forming a rounding bottom at the crucial level of $32.40 on the 4-hour chart. A breakout above $32.50 could trigger significant movement, with support levels at $29.42 and $30.81.

AUD/USD Technical Analysis

The Australian dollar's strength due to the gold market has faced pressure from the stronger US dollar, pushing AUD/USD lower. Despite this, the price remains above the 50 and 200 SMAs, indicating an overall upward trend.

AUD/USD 4-Hour Chart – Support at Rising Channel

AUD/USD has reached a short-term support level, defined by the rise channel pattern on the 4-hour chart. The initial support is at $0.6790; a break below this could move the pair to $0.66.