Gold and silver climb against weak dollar
Spot gold ended up 3.9% last week, the largest weekly advance since April, as the ICE Dollar Index sank to a 2-month low...
Share this:
Spot Gold: Extension of Rebound
Spot gold ended up 3.9% last week, the largest weekly advance since April, as the ICE Dollar Index sank to a 2-month low. Despite a stronger-than-expected U.S. nonfarm payrolls report for October, investors stick to view that a large scale of stimulus package is needed for the US economy, which would drive the dollar lower.
On a daily chart, spot gold is holding up well after breaking above a declining trend line drawn from August. In fact, the 20-day moving average is skewing upward and is about to cross above the 50-day one. The level at $1,900 might be considered as the nearest support, while the 1st and 2nd resistance are moved up to $1,990 and $2,025 respectively.
Source: GAIN Capital, TradingView
Spot Silver: Towards September's High
From a technical point of view, spot silver is gathering more upside momentum as shown on the daily chart. Similar to spot gold, it has broken above a bearish trend line drawn from August and stands above both the 20-day and 50-day moving average. The level at $23.90 might be considered as the nearest support, while the 1st and 2nd support are expected to be located at $26.80 and $28.20 respectively.
Source: GAIN Capital, TradingView
Spot Gold: Extension of Rebound
Spot gold ended up 3.9% last week, the largest weekly advance since April, as the ICE Dollar Index sank to a 2-month low. Despite a stronger-than-expected U.S. nonfarm payrolls report for October, investors stick to view that a large scale of stimulus package is needed for the US economy, which would drive the dollar lower.
On a daily chart, spot gold is holding up well after breaking above a declining trend line drawn from August. In fact, the 20-day moving average is skewing upward and is about to cross above the 50-day one. The level at $1,900 might be considered as the nearest support, while the 1st and 2nd resistance are moved up to $1,990 and $2,025 respectively.
Source: GAIN Capital, TradingView
Spot Silver: Towards September's High
From a technical point of view, spot silver is gathering more upside momentum as shown on the daily chart. Similar to spot gold, it has broken above a bearish trend line drawn from August and stands above both the 20-day and 50-day moving average. The level at $23.90 might be considered as the nearest support, while the 1st and 2nd support are expected to be located at $26.80 and $28.20 respectively.
Source: GAIN Capital, TradingView
Related tags:
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Gold Price Forecast: XAU/USD Avoids Breakdown as Yields Surged but Can it Continue?
Surging Treasury yields sent a jolt across markets last week but, so far, gold prices have held above the FOMC low. The big question now is whether that can continue and, if not, will bulls show up at $4100 or $4k like they did in June and July?
Gold Q4 2026 outlook: Resilience in the face of rallying dollar and yields
As we headed towards the latter stages of Q3 and into Q4, the Fed had just hiked rates in a hawkish FOMC meeting, while the likes of the ECB and BoJ had also tightened their respective policies. Oil prices remained elevated amid the prolonged US-Iran conflict. Meanwhile, bond yields were breaking out, and the dollar was higher across the board. Yet, remarkably, gold was still holding in the positive territory for the third quarter, even if it had weakened somewhat in September.
Gold forecast: XAU/USD could take a larger dive after the big rise in yields
Gold prices have been falling in the last few days after last week’s post-FOMC pop faded amid rising interest rate expectations, higher oil prices and a strengthening US dollar. As before, I wasn’t convinced gold would thrive in the current macro backdrop.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.