Gold and Silver advanced sharply today, recovering from recent lows as traders interpreted both technical signals and fresh political developments in Washington as reasons to buy. The rally suggests the first corrective leg from October’s highs may be over, with both metals finding firm support at their moving averages.
The rebound gained a fundamental boost from news that the prolonged U.S. government shutdown could soon end. Reports indicated that centrist Senate Democrats agreed to back a short-term funding bill that would reopen parts of the government through January 30. The agreement, if passed, would restart the flow of federal data—potentially reinforcing market expectations for another Fed rate cut in December.
Renewed rate-cut bets lent support to metals already positioned near key technical floors. Investors also saw the reopening deal as a sign that policy paralysis in Washington may ease, removing one near-term drag on market confidence.
Technically, Gold has broken decisively above its 55 4H EMA, indicating that the pullback from 4,381.22 likely completed at 3,886.41, ahead of 55 D EMA. Decisive break above 4,161.35 resistance would confirm upside momentum toward 4,381.22. However, strong resistance is expected near that level, to bring another fall to extend the consolidation, before the longer-term uptrend resumes.
Silver’s structure shows a similar setup. Its decline from 54.44 seems to have ended at 45.20, ahead of 55 D EMA. Sustained trade above 49.42 resistance would target a retest of 54.44. As with Gold, resistance there should limit gains and set the stage for another short-term retreat—potentially toward 45.52—before the broader bullish trend resumes later.
