Both silver and gold prices advanced significantly amid growing speculation of intervention in the foreign exchange markets to boost the Japanese Yen and weaken the US Dollar. Silver (XAG/USD) rose for the second consecutive day, reaching a three-day high above $59.00 and trading at $59.22 at the time of writing. The technical outlook suggests that after eight days of consolidation, silver reclaimed the $59.00 level, though it still respects a downward market structure. The Relative Strength Index (RSI) remains in bearish territory but has been aiming higher for four trading days. For a bullish continuation, silver must clear the psychological $60.00 mark, exposing the July 22 peak at $60.94 and potentially challenging $61.00. On the downside, sellers would need to push silver below the July 28 daily low of $56.64 to test the yearly low of $54.77 [1].
Gold (XAU/USD) jumped 0.92% on Thursday, trading at $4,100 after bouncing off a low of $4,028. The US Dollar Index (DXY) tumbled nearly 0.90%, exchanging hands at 99.90, as speculation about Japanese authorities intervening in FX markets pushed gold to a five-day high of $4,126. The softer US economic data also contributed to the precious metals rally: the Core Personal Consumption Expenditures (PCE) Price Index for June ticked lower from 3.4% to 3.3% year-over-year, while headline PCE slowed from 4.1% to 3.7%. US GDP for Q2 2026 missed forecasts, coming in at 1.5% versus expectations of 2.1%, due to a widening trade deficit. The Federal Reserve held rates unchanged last Wednesday with a 9-3 split vote, and money markets trimmed their Fed-hawkish bets for September, with only a 30% chance of a rate hike and a 70% chance of a hold [2].
Technical outlook for gold shows momentum turning bullish as the RSI pierced above the 50 neutral level. For further bullish continuation, buyers must clear the July 22 daily high at $4,165, which would open the path to test the 50-day Simple Moving Average at $4,194, and above that, the July 6 peak at $4,202. Downward, the first support for XAU/USD is at $4,100 [2].
Both articles highlight the impact of suspected Japanese Yen intervention and US Dollar weakness as key drivers for the surge in precious metals. While silver eyes the $60.00 mark for further gains, gold is supported by easing Fed rate hike bets and softer US economic data. The market reaction has been strongly positive for both metals, with technical indicators suggesting further upside potential if key resistance levels are breached [1][2].
CONCLUSION
Suspected intervention in the FX markets to strengthen the Yen and weaken the Dollar has fueled a rally in both silver and gold, supported by softer US economic data and reduced Fed rate hike expectations. Technical outlooks for both metals indicate bullish momentum, with key resistance levels in focus for further gains. The market takeaway is a high-impact move favoring precious metals amid currency volatility and shifting monetary policy expectations.