The Australian Dollar (AUD/USD) is facing continued bearish pressure, approaching its support zone near the $0.62 mark. The strength of the US Dollar is a significant factor, driven by expectations of growth-boosting and inflationary policies under the new Trump administration. As markets enter a quiet period ahead of the New Year holiday, the AUD is unlikely to experience any substantial recovery. Additionally, the Federal Reserve’s cautious stance on rate cuts further supports the US Dollar, keeping the AUD/USD pair under pressure.
Gold (XAU) remains relatively stable as market participants await further developments in US monetary policy and the potential impact of trade tariffs under the Trump administration. Federal Reserve Chair Jerome Powell’s emphasis on inflationary progress limits the likelihood of aggressive rate cuts, which may cap gold’s upside potential. However, uncertainties surrounding inflation and global economic policies continue to provide a solid support base for gold.
In a related update, US economic data shows that weekly Initial Jobless Claims fell to their lowest level in a month. For the week ending December 21, 219,000 Americans filed for unemployment benefits, a decrease from the previous week’s 220,000 and lower than the expected 223,000. Despite this positive data, the US Dollar Index remained largely unchanged due to thin market liquidity in the lead-up to the holiday season.
Silver (XAG) is also influenced by the strong US Dollar and subdued market conditions. The potential for inflationary pressures, especially from trade policies under the Trump administration, could eventually support silver as a hedge against inflation. In the short term, silver is expected to remain range-bound, awaiting more definitive direction from upcoming economic data.
Gold (XAU) Technical Analysis
Gold Daily Chart – Rebound from Ascending Channel
The daily chart for gold reveals that prices have rebounded from the support of an ascending channel, with the 100-day Simple Moving Average (SMA) providing key support. The price remains above the red-dotted trendline, suggesting positive momentum. However, the Relative Strength Index (RSI) fluctuates around the neutral zone, indicating indecision in the market. A breakout above the 50-day SMA, currently near $2,665, could drive prices higher.
Gold 4-Hour Chart – Consolidation
On the 4-hour chart, gold is consolidating within the channel during the Christmas holidays, with a target near $2,650. A decline below $2,580 could push gold prices lower, but the current trend remains neutral as the market awaits further direction from upcoming US economic data.
Silver (XAG) Technical Analysis
Silver Daily Chart – Break Below Ascending Channel
The daily chart for silver indicates that the price has briefly broken below the support area of the ascending channel. However, it quickly rebounded, closing back above the 200-day SMA, signaling strength. December’s typically low market liquidity can lead to false breakouts, and a recovery above the ascending channel lines could drive silver prices higher.
Silver 4-Hour Chart – Positive Momentum
The 4-hour chart shows encouraging signs for silver, with the price attempting to recover above the $29.60 mark. The RSI is rising from the neutral zone, indicating potential for a move toward $31, suggesting that bullish momentum may be building.
AUD/USD Technical Analysis
AUD/USD Daily Chart – Bearish Pressure at Support Zone
The daily chart for AUD/USD reveals sustained bearish pressure, with the price approaching its lower support zone around $0.6170. A confirmed break below this level could signal a longer-term decline for the pair. However, a strong rebound from this support level could lead to a recovery within the red zone on the chart.
AUD/USD 4-Hour Chart – Descending Channel
On the 4-hour chart, AUD/USD is trading within a descending channel, maintaining bearish pressure. The price is currently testing the support zone and is attempting a rebound. A break below the $0.6170 level could further extend the bearish trend.
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