01/07/2026
Gold and Silver Daily Charts:
Oversold and Approaching Key Support
Both Gold and Silver are looking oversold on the Daily and Weekly timeframes as price moves close to some key support levels.
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Gold
Price is back at its October 2025 lows, where it ranged between $3,900 and $4,000 for about a week before buyers stepped in and drove things higher.
This time the setup looks stronger. The RSI has reset significantly more, giving us Hidden Bullish Divergence on the longer term. On top of that, the current low this week is showing Regular Bullish Divergence compared to the 11th June low.
That combination matters. When you get longer term Hidden Bullish Divergence lining up with shorter term Regular Divergence, it's a strong signal that selling pressure is fading. Now we wait for price to confirm.
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Silver
Silver is approaching its Oct to Nov 2025 resistance level around $54, which should now flip to act as support. This is a classic level to watch, since old resistance often becomes new support once price trades back down to it.
The RSI here is also significantly reset and signaling Hidden Bullish Divergence. We're waiting for confirmation of a local low, and from there we'd look for a move higher.
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The Macro Picture
Here's the part worth being honest about. The macro landscape is still hostile to metals.
Bond yields are telling us the market is currently pricing in 2 Fed rate hikes for the remainder of this year. Higher real rates and a strengthening US Dollar is not a favourable environment for either precious metals or industrial metals.
So while the charts are lining up for a recovery bounce soon, the broader backdrop points to a continuation of the correction unless the inflation, rates, and US Dollar narrative changes.
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The Takeaway
Short term, the technicals favour a bounce. Both metals are oversold, sitting on key support, with divergences building underneath. But the macro story hasn't turned yet, so treat any bounce as a relief move within an ongoing correction until proven otherwise. Watch for price confirmation before committing.