Gold (XAU) and Silver (XAG) Q1 2025 Price Forecast

Gold Outlook

Gold has a history of grinding back and forth for some time and as interest rates in America continue to climb, that does work against it. I suspect that we will look at the $2,500 level as a floor in Q1 with each dip probably attracting a little bit of buying pressure, but I’m not expecting a lot of momentum. The one thing that could help gold is if somehow the 10-year yield starts to drop.

So, for example, if it were to drop below 4%, I think that really could get gold rocking to the upside. All of that being said, I don’t have any interest in shorting gold. I just think it’s going to act very much like it did through 2021, when there were buyers. It’s just that there wasn’t a lot of momentum.

Gold breaking above the $2,800 level would change everything though, and should send it towards the $3,000 level, which I wouldn’t be surprised to see happen sometime during 2025. But I think the first couple of months are going to favor sideways action. There is an uptrend line that I have on the chart for the video. I think it gets broken, but not necessarily as a negative event, more or less an event where we just drift.

Silver Outlook

Silver markets are probably going to be a little bit of a different story here, and this is for multiple reasons. Number one, silver absolutely hates higher interest rates, even more so than gold, and it has seen quite a bit of selling pressure. If the market breaks down below the $28.50 level, then I think we go looking to the $26.50 level. Retail traders make the mistake of thinking gold and silver are the same thing quite often.

So, some of you are going to get caught on the wrong side of this market due to perhaps gold drifting a little bit higher in a range. That being said, if silver could recapture the $30 level on a weekly close, then things might change. But silver has a wicked habit of getting very noisy and then rolling over. And we are in the midst of something very similar to that right now.

Given the choice between the two metals in Q1 2025, I favor gold over silver quite handily. And in fact, some traders that I know will buy gold and short silver, making money off of the differential. It’s called a pair’s trade. So it is something to keep in the back of your mind. It’s not that silver can’t go higher. It’s just that there are far too many things working against it right now. Furthermore, if industry starts to slow down, that greatly influences silver in ways that it does not influence gold.