Gold, Silver, Platinum Forecasts – Metals Eye Breakout as Seasonal Demand Supports Prices

Gold Faces Pressure but Seasonal Strength Provides Support

Gold prices have retreated from a three-week high, weighed down by a strengthening U.S. dollar as markets react to potential economic and trade shifts under President-elect Donald Trump. His pro-tariff agenda has driven the dollar to its strongest weekly performance since mid-November, making gold less attractive for international buyers. Despite this, rising global debt and ongoing geopolitical tensions are expected to provide a safety net for gold. Trump’s policies are likely to stoke inflation, which could slow the U.S. Federal Reserve’s plans for rate cuts. The Fed projects only two cuts in 2025, following three in 2024, limiting gold’s upside. However, gold continues to benefit from seasonal trends, with January historically delivering strong gains as investors open fresh positions and jewelry demand rises.

Gold is trading at $2,639, slightly below the 50-day SMA at $2,657. Key resistance levels stand at $2,675 and $2,684, while support is seen at $2,579. A break below this could push prices toward $2,525. The RSI at 50.21 suggests the market is in neutral territory. A decisive break above $2,684 could trigger further upside, while failure to reclaim the moving average signals potential for continued consolidation.

Silver Holds Steady but Faces Key Resistance at $31

Silver is treading cautiously, with prices at $29.58, reflecting a slight increase of 0.08%. While silver continues to be pressured by the stronger dollar, its industrial demand, particularly in renewable energy and electronics, offers long-term bullish potential. The path higher faces obstacles, with resistance looming at $31.44 and $31.74. A breakout above this zone could spark a significant upward move. On the flip side, support is established at $28.75 and $27.71, with additional downside risk toward $27.51.

Silver’s RSI sits at 43.57, indicating a slightly bearish outlook. A climb above 50 would signal growing buyer interest. Reclaiming the 50-day SMA at $31.00 is crucial for silver’s upward momentum. Failure to do so could result in extended sideways movement or a dip toward lower support levels.

Platinum Rebounds but $952 Remains a Stiff Barrier

Platinum has shown resilience, climbing by 1.96% to $938 as it recovers from recent declines. Despite the rebound, platinum faces significant resistance at $945, with the 50-day SMA at $952 acting as a critical hurdle. Platinum’s longer-term outlook remains supported by increasing demand from the automotive sector and the rise of hydrogen energy technologies.

A move above $945 could pave the way toward $952 and beyond, while failure to clear resistance may lead to a pullback toward $900. The RSI at 52.38 reflects mild bullish sentiment, but platinum’s performance is likely to track broader industrial trends and market sentiment.

More Information in our Economic Calendar.