Gold (XAU) Silver (XAG) Daily Forecast: $2,723 Resistance and $30.55 Support Key Levels

Market Overview

Gold (XAU/USD) hovered around $2,711 during the Asian trading session, reflecting market indecision. Softer U.S. inflation data raised expectations of further Federal Reserve rate cuts in 2025, providing some support for the non-yielding metal.

A decline in U.S. Treasury bond yields and the U.S. Dollar added to gold’s appeal, though gains remain capped by market anticipation that the Fed might pause its easing cycle later this month.

The easing of trade tariff concerns under President-elect Donald Trump and geopolitical tensions further reduced gold’s safe-haven demand. However, the potential for a rate hike by the Bank of Japan next week added pressure, keeping the metal within a tight trading range.

Despite these challenges, gold is on track for its third consecutive weekly gain, as investors await critical U.S. housing data for fresh direction.

Silver Pressured Amid U.S. Dollar Strength

Silver (XAG/USD) slipped to $30.68, tracking mild losses as a stronger U.S. Dollar and mixed market sentiment weighed on the precious metal.

Unlike gold, silver lacks the same safe-haven allure, yet it remains supported by positive commodity market sentiment.

Inflationary concerns could still bolster silver prices, especially if economic uncertainties persist.

U.S. Economic Data Supports Mixed Outlook

U.S. inflation eased in December, fueling speculation of up to two Federal Reserve rate cuts this year. Retail sales rose 0.4%, while November’s data was revised upward to 0.8%, signaling resilience in consumer spending.

Additionally, the Philly Fed Manufacturing Index soared to 44.3, its highest level since April 2021.

However, jobless claims increased to 217,000, raising concerns about labor market stability. Upcoming U.S. housing and industrial production data could further influence market sentiment, impacting both the U.S. Dollar and precious metals.

Short-Term Forecast

Gold (XAU/USD) remains under $2,723, limited by strong resistance and a cautious Fed outlook. Silver (XAG/USD) consolidates near $30.55, awaiting fresh market cues.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,711.14, down 0.14%, as it struggles to recover above the pivot point at $2,723.00. The double-top pattern near $2,723 reinforces strong resistance, keeping bullish attempts in check. Immediate support lies at $2,689.72, with deeper levels at $2,658.80. On the upside, resistance is observed at $2,749.20 and $2,771.37.

The 50-day EMA at $2,679.43 provides short-term support, while the 200-day EMA at $2,656.28 reflects a broader bullish structure. A sustained move above $2,723 could signal a shift in sentiment, targeting $2,749. Conversely, failure to reclaim this level may deepen bearish momentum toward $2,658.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $30.68, down 0.41%, as it consolidates near the pivot point of $30.55. Immediate resistance is seen at $31.09, with further targets at $31.75, while support lies at $29.52 and deeper at $28.79.

The 50-day EMA at $30.21 acts as a short-term support, while the 200-day EMA at $30.28 reinforces the broader neutral-to-bullish sentiment.

A sustained move above $30.55 could indicate bullish momentum, targeting higher levels, but a break below the pivot risks accelerating bearish pressure.