Dollar Rally Threatens Gold and Silver Prices Ahead of US Jobs Report
The gold and silver prices are under pressure as the US dollar rallies to a near 17-month high. The strong dollar has pushed both metals down, despite the formation of a V-shaped recovery in Q1 2026 and a double bottom in August and September. Dallas Fed President Lorie Logan's comments that interest rates need to rise by at least another 50 basis points have added more pressure on gold and silver.
The US jobs report could shape the next move in metals, with strong hiring or growth in wages potentially reinforcing the case for further tightening by the Fed. On the other hand, weaker jobs data could ease pressure on both metals. Gold needs to reclaim $4,300 to improve its outlook, while silver needs to break above $62.60 to support a strong recovery.
The price of gold is forming a descending broadening wedge pattern from the highs of January 2026, with the RSI remaining below the midline on the 4-hour chart. The immediate resistance for gold remains at $4,300, while $4,100 is an important support level. A break of either of these levels will likely define the next move in the gold market.