Precious metals are flashing strong bullish signals this week, with gold (XAU/USD) and silver (XAG/USD) consolidating near key resistance zones. The continued decline in the US Dollar Index and growing bets on a Federal Reserve interest rate cut in September are fueling momentum for a breakout that could send both metals soaring to new highs.
🟡 Gold Price Outlook: Bulls Gear Up for Breakout Toward $4,000
Gold prices are hovering just below the critical $3,450 resistance, supported by strong technical momentum and a dovish shift in Fed policy expectations. Despite hesitation around this level, analysts believe a decisive push above $3,500 could open the path toward $4,000, a psychological and technical target for bulls.
💬 Fed officials such as Neel Kashkari and Mary Daly have openly hinted at rate cuts, citing slowing economic growth and labor market softness. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold — a bullish signal for the yellow metal.
🔹 Gold Daily Chart Insight:
- Price rebounded from the 100-day SMA
- Trading above 50-day SMA with bullish momentum
- $3,450 marks immediate resistance; breakout above could aim for $4,000
🔹 Gold 4-Hour Chart Insight:
- Tight consolidation between $3,250 and $3,450
- Break above $3,500 signals a major bullish continuation
- Downside risk remains if price slips under $3,250
⚪ Silver Price Analysis: $50 In Sight if Bulls Break $43
Silver is not far behind in the rally, with prices stabilizing around $38 and building momentum toward the $43 resistance level. Strong support at the 50-day SMA near $36 has set the stage for a bullish continuation, especially if geopolitical risks continue to rise.
The technical structure points to a potential surge toward the $50 mark, a major target level, should silver decisively break past $43.
🔹 Silver Daily Chart Highlights:
- Strong bounce from $36 support
- Clear bullish trend aiming toward $43, then $50
🔹 Silver 4-Hour Chart Setup:
- Bullish formation above $35 support zone
- Break above $40 may trigger momentum toward $43
- Dips could offer buying opportunities
💵 US Dollar Index Weakness Could Supercharge Gold & Silver
The US Dollar Index (DXY) remains under pressure, failing to break above 100.50 and now trending lower toward the 96.00 support zone. A further breakdown could push DXY toward 90.00, historically a bullish backdrop for precious metals.
🔻 DXY Daily & 4-Hour Summary:
- Daily chart shows failure at 100.50 and weakness under 50-day SMA
- 4-hour chart suggests bearish consolidation between 99 and 96
- Break below 96 likely to accelerate downside, benefiting gold and silver
🔍 Final Word: All Eyes on $3,500 Gold and $43 Silver
With technical momentum, macroeconomic conditions, and Fed policy expectations all aligning, both gold and silver are positioned for major upside breakouts. Traders and investors will be watching closely for confirmation of moves above $3,500 in gold and $43 in silver — levels that could spark a rush toward $4,000 and $50, respectively.
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