Gold (XAU) Silver (XAG) Daily Forecast: Breakout or Breakdown? Key Resistance Levels in Focus

Market Overview

Gold (XAU/USD) extended its decline on Friday, falling over 1% to trade around $2,863, pressured by ongoing uncertainty surrounding US trade policies. The drop follows statements from US President Donald Trump about upcoming tariffs on Canadian and Mexican imports, scheduled to start on April 2.

Trump also confirmed a 25% tariff on European autos, further clouding market sentiment.

The escalating tariff measures strengthened the US Dollar, making gold less attractive for international investors. A stronger dollar increases the cost of gold for buyers using other currencies, contributing to the recent selling pressure.

Silver Faces Headwinds as Dollar Strengthens

Silver (XAG/USD) also struggled, trading at $31.23, weighed down by a robust US Dollar and trade policy concerns. The dollar’s strength is supported by positive US economic data and a hawkish stance from the Federal Reserve.

US economic growth remained steady at 2.3% in Q4 2024, meeting expectations and boosting investor confidence in the dollar. The US Dollar Index (DXY) held firm above 107.00, maintaining pressure on silver as a non-yielding asset.

Adding to silver’s woes, US-China trade tensions continued to escalate, with the US increasing tariffs on Chinese goods to 20%. Despite China’s liquidity measures, including a CNY300 billion injection via the Medium-term Lending Facility (MLF), silver prices remained under pressure.

Hawkish Fed Stance and Economic Data Weigh on Precious Metals

The bearish sentiment for both gold and silver was further amplified by comments from Federal Reserve Bank of Atlanta President Raphael Bostic, who emphasized the need to maintain high interest rates to control inflation.

This hawkish outlook reduced expectations of near-term rate cuts, limiting the appeal of non-yielding assets like gold and silver.

US Treasury Secretary Scott Bessent’s support for making Trump’s tax cuts permanent further bolstered the dollar’s strength. In contrast, despite China’s People’s Bank injecting CNY318.5 billion through reverse repos, market focus remained on US economic policies and trade developments.

Short-Term Forecast

Gold and silver remain bearish amid strong US Dollar and trade tensions. Watch key support levels: $2,839 for gold and $30.69 for silver.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,863.13, down 0.03%, maintaining a bearish stance as it hovers below the Pivot Point at $2,878.17. The metal is under pressure, trading beneath the 50-day Exponential Moving Average (EMA) at $2,903.90 and the 200-day EMA at $2,892.04, signaling continued selling interest.

Immediate support is at $2,839.94, with a deeper cushion at $2,806.69. A drop below $2,839.94 could trigger further selling.

On the upside, resistance stands at $2,878.17, with stronger barriers at $2,920.67 and $2,956.68. A break above $2,878.17 would shift momentum to the bulls. For now, the trend remains bearish unless gold recovers above this key level.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $31.23, showing little movement but maintaining a bearish outlook as it stays below the Pivot Point at $31.41. The price is also under pressure from the 50-day Exponential Moving Average (EMA) at $31.82 and the 200-day EMA at $32.01, reinforcing the bearish bias.

Immediate support is found at $30.69, with a deeper cushion at $30.28. If silver breaks below $30.69, it could see more selling pressure.

On the upside, resistance is at $31.41, with stronger barriers at $31.94 and $32.48. A break above $31.41 would signal a potential shift to a bullish trend. Until then, the bias remains bearish.