Gold and silver prices experienced a short-term pullback following stronger-than-expected US inflation data and a rebound in the US dollar. Despite the correction, both metals remain in bullish consolidation zones, with the long-term outlook still favoring further gains.
Impact of US Economic Data on Precious Metals
US initial jobless claims fell by 3,000 to 224,000, defying expectations of an increase to 228,000. At the same time, the US Producer Price Index (PPI) surged 0.9% in July 2025, marking its fastest monthly rise since June 2022. Year-over-year, producer prices rose 3.3%, well above market forecasts.
This hotter inflation data boosted the US dollar and Treasury yields, applying pressure on gold. However, the overall bullish bias for precious metals remains intact, supported by expectations of upcoming Federal Reserve rate cuts.
Gold Technical Analysis (XAUUSD)
Daily Chart – Bullish Consolidation
Gold is consolidating around the 50-day SMA, with strong support at $3,250.
- Break below $3,250 → Could push prices toward the green zone buy area.
- Break above $3,450–$3,500 → Likely to trigger a strong rally.
RSI is currently leaning below the midpoint, signaling uncertainty in the near term.
4-Hour Chart – Sideways Movement
Gold is ranging between $3,250 and $3,450. The RSI is trending lower, indicating rising selling pressure toward the $3,250 support level.
Silver Technical Analysis (XAGUSD)
Daily Chart – Holding Bullish Structure
Silver has been consolidating above its 50-day SMA for over 10 days.
- Break above $40 → Could open the path to $43.
- Support at $35 → As long as it holds, the medium-term trend remains bullish.
An Adam & Eve pattern supports the potential for higher prices in the coming weeks.
4-Hour Chart – Key Support in Play
Silver is holding above the $34.50 support zone. A break above $40 would signal renewed bullish momentum, while a drop below $34.50 could turn the trend negative.
US Dollar Index (DXY) Technical Outlook
Daily Chart – Broader Downtrend Intact
The US Dollar Index is rebounding from its 50-day SMA but remains in a broader bearish trend. As long as it stays below 100.50, the downside bias remains intact.
4-Hour Chart – Rebound from Wedge Support
The DXY recently bounced from the 97.70 support of an ascending broadening wedge pattern.
- Break above 99.30 → Could see a move to 100.50.
- Below 100.50 → The longer-term outlook stays bearish despite short-term rebounds.
📌 Written for www.dailygold.pk — Pakistan’s trusted source for gold & silver market updates and analysis.