Gold and silver prices continue to consolidate after the US Federal Reserve’s recent rate cut, as both precious metals hold strong support levels amid ongoing global economic uncertainty. Despite short-term volatility, analysts maintain a bullish long-term outlook supported by robust ETF inflows, continued central bank buying, and rising geopolitical risks.

Gold consolidates near $4,000 amid hawkish Fed comments

Spot gold (XAUUSD) is currently trading around the $4,000 per ounce mark, following a pullback from its record high of $4,380 in October. The metal, however, still posted a 3.74% monthly gain and remains up 53% year-to-date, signalling a resilient uptrend despite policy headwinds.

Hawkish remarks from Federal Reserve officials, including Cleveland Fed President Beth Hammack, have dampened hopes of another rate cut in December. Her statements reinforced market doubts and reaffirmed the Fed’s commitment to keeping monetary policy restrictive amid persistent inflation.

The US dollar’s strength has further limited gold’s short-term upside, but long-term drivers—such as central bank demand and safe-haven buying—continue to support prices.

Technical outlook: Key levels to watch for gold

Daily chart: Holding above crucial support

On the daily chart, gold prices are consolidating within an ascending broadening wedge pattern, hovering around the $4,000 level. A rebound toward $4,150 would face strong resistance, while the 50-day simple moving average (SMA) between $3,800–$3,850 remains a critical support zone.

A decisive break below $3,800 could open the way to $3,600–$3,700, whereas a breakout above $4,200 would signal renewed bullish momentum and confirm the next leg higher.

4-hour chart: Consolidation before breakout

The 4-hour chart indicates that gold has broken below the wedge pattern and retested the $4,050 level as resistance. Price action now suggests a triangle consolidation, with downside confirmation below $3,890, and bullish continuation possible on a break above $4,200.

Silver rebounds from key support levels

Spot silver (XAGUSD) has shown resilience after rebounding from its 50-day SMA near $45. The price currently faces resistance around $49.30, consolidating just below this key level.

A sustained move above $49.30 could trigger a rally toward $50–$52, while a drop below $45 may lead to further declines toward the $40 region.

Analysts note that silver’s recent correction was driven by profit-taking following overbought conditions. The current consolidation, while stabilising above the 50 RSI level, indicates the potential for renewed bullish momentum.

Broader trend: Silver holds strong despite correction

On the weekly chart, silver formed a shadow near $54.50 before correcting to its first major support at $45. The bounce from this level suggests bullish sentiment remains intact. As long as prices stay above $41–$42, the next leg higher could target $60, supported by industrial demand and investment flows.

Short-term technicals show that silver recently broke below an ascending wedge pattern but found support near $45, forming what analysts call a potential “bear trap”. A recovery above $49.30 would confirm re-entry into the broader uptrend channel.

Outlook: Consolidation before the next breakout

Both gold and silver are likely to trade sideways in the near term, awaiting fresh macroeconomic cues. Analysts expect renewed strength once inflation and interest rate expectations stabilise. The ongoing central bank purchases, ETF inflows, and risk-off sentiment globally continue to underpin the metals’ longer-term bullish structure.