Gold, Silver, Platinum Forecasts – XAU/USD Hits Record High Ahead of Fed Policy Moves

Gold

Gold reached a record high on Tuesday, driven by expectations of U.S. monetary easing and ongoing geopolitical risks, attracting momentum-driven funds. The demand is further supported by robust fundamentals, including strong Asian physical demand, central bank purchases, and its safe-haven status.

StoneX’s Rhona O’Connell noted the self-fulfilling nature of this move, as it triggered stops and attracted momentum funds. Technically, gold could rise to $2,180, a Fibonacci projection.

The upcoming economic data and Fed Chair Powell’s testimonies are pivotal, according to Heraeus’ Alexander Zumpfe.

Independent analyst Ross Norman forecasts a rise to $2,300 within six months, anticipating Federal Reserve rate cuts. Despite this, gold-backed ETF holdings, especially SPDR Gold Trust’s GLD, have declined by 7% this year.

Silver

Silver (XAG/USD) turned lower before the mid-session on Tuesday despite the surge in gold prices. The surprise move suggests that the current five day rally was only a reaction to the spike in gold prices since XAG/USD hasn’t taken out an significant highs and is only slightly better for the year.

Short-covering after a breakout over the 200-day moving average at $23.27 may also be behind the rally. If this market is going to move higher over the near-term then new money is going to have to come into the market on a pullback into support.

Platinum

Platinum is also lower on Tuesday and remains down for the year. Technically, the market is trading below the 50-day moving average at $911.48 and the 200-day moving average at $923.89. With the exception of a surge through these resistance levels in December, they have been essentially providing resistance since July 2023.

Platinum, being relatively inexpensive compared to gold, has not yet followed suit in terms of price movement. However, as the gold market begins to stabilize, platinum is anticipated to benefit from its recent upward momentum.

The gold-to-platinum ratio has escalated to its highest point since March 2020, mirroring the peak reached during the early stages of the pandemic, setting a record high.