Gold, Silver, Platinum Forecasts – Bullish Momentum Builds Amid Geopolitical Tensions

Gold Surges on Safe-Haven Demand Amid Geopolitical and Economic Uncertainty

Gold prices rallied to a two-week high on Thursday as traders sought refuge in the metal, driven by geopolitical tensions and anticipation of the Federal Reserve’s policy direction. Uncertainty surrounding President-elect Donald Trump’s trade policies also contributed to the bullish sentiment for bullion.

The precious metal’s rise comes against the backdrop of escalating global tensions, including Russia’s drone strike on Kyiv and Israel’s military actions in Gaza. With financial markets jittery ahead of Trump’s inauguration on January 20, gold’s status as a hedge against economic and political risk continues to draw investors.

Fundamental Factors Supporting Gold Prices

Gold thrives in low-interest-rate environments and benefits from economic instability. Traders are positioning themselves ahead of crucial U.S. economic data, including job openings, ADP employment figures, and the Fed’s December meeting minutes. These indicators will shape expectations for the central bank’s policy in 2025.

In 2024, gold posted a stellar performance with over a 27% annual gain—its best year since 2010. This surge was driven by rate cut expectations, central-bank buying, and geopolitical risks. Analysts suggest that a price target of $3,000 per ounce remains plausible, with corrections early in the year potentially setting the stage for further upward momentum.

The unwinding of the “Trump trade,” which initially boosted the U.S. dollar and equities, could favor gold. Trump’s proposed tariffs and protectionist policies may introduce inflationary pressures and trigger trade disputes, both of which are historically bullish for gold.

Technical Analysis: Gold (XAU/USD)

Gold rose by 1.25%, closing at $2,656.98 after bouncing off support at $2,590. Strong buying emerged at this level, preventing further declines. Immediate resistance lies at $2,675, with a more significant barrier around $2,684. The 50-day moving average, positioned at $2,659, is a key pivot point. A sustained break above this level could see gold test $2,700 in the coming sessions. The RSI currently stands at 53.59, indicating moderate bullish momentum but room for further upside before reaching overbought conditions.

Technical Analysis: Silver (XAG/USD)

Silver prices advanced by 2.28%, trading at $29.56. The metal rebounded from key support around $28.75, signaling short-term strength. Resistance lies near $31.74, with the 50-day moving average acting as a barrier at $31.08. The RSI reading at 43.23 indicates silver is recovering from oversold conditions but remains below the midline. A break above the 50-day moving average could pave the way for further gains toward the $33 level.

Technical Analysis: Platinum (XPT/USD)

Platinum gained 2.21%, closing at $921.35. After testing support at $905.43, the price bounced but remains below significant resistance at $945.97. The 50-day moving average at $953.85 continues to cap upward movements. The RSI stands at 45.81, suggesting moderate momentum. A decisive break above $946 could lead to retests of $960, while failure to sustain current levels may result in a pullback to $895.

More Information in our Economic Calendar.