Gold (XAU) Silver (XAG) Daily Forecast: Bullish Momentum Targets $2,656 & $31.50

Market Overview

Gold prices (XAU/USD) extended their bullish momentum on Monday, climbing to $2,650 before settling around $2,644. The rally is fueled by expectations of a Federal Reserve rate cut in December, following a stronger-than-expected US Nonfarm Payrolls (NFP) report.

The data revealed 227,000 new jobs in November, surpassing expectations of 200,000 and October’s revised 36,000. However, the unemployment rate edged up to 4.2%, signaling potential economic softening.

Market sentiment suggests a 70% likelihood of a 25-basis-point rate cut at the Federal Reserve’s December meeting, keeping US Treasury bond yields subdued and bolstering gold’s appeal as a non-yielding safe-haven asset.

The weakening US dollar, which slid after the labor market report, further supported gold prices by making the metal more attractive to foreign buyers.

Silver Tracks Gold’s Gains Amid Economic Uncertainty

Silver (XAG/USD) also benefitted from the weakening dollar, rising to $31.14, reflecting similar safe-haven demand. The metal remains supported by its dual role as both an industrial and precious metal.

China’s latest economic data provided mixed signals, with the Consumer Price Index (CPI) posting its smallest increase in five months while the Producer Price Index (PPI) showed signs of improvement.

These indicators suggest moderate stability in China, the world’s largest silver consumer, lending additional support to the metal.

Short-Term Forecast

Gold and silver prices maintain bullish momentum, driven by rate cut expectations and a weaker US dollar. Key resistance for gold is $2,656; silver eyes $31.28, signaling further gains.

Gold Prices Forecast: Technical Analysis

Gold is trading at $2,644.21, up 0.41%, showing resilience above its pivot point at $2,638.08. The 50-day EMA at $2,641.04 reinforces a short-term bullish bias, while the 200-day EMA at $2,646.06 suggests that momentum could remain upward if prices stay above these levels.

Immediate resistance is at $2,656.43, with further levels at $2,666.24 and $2,676.34, signaling room for gains if bullish momentum persists. On the downside, key support lies at $2,627.23, with additional safety nets at $2,615.59 and $2,605.22.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading at $31.14, up 0.55%, supported by an upward trendline near $30.85 and maintaining a bullish stance above the pivot point at $30.86. The 50-day EMA at $31.05 and the 200-day EMA at $30.97 both align closely, reinforcing short-term stability.

Immediate resistance is at $31.28, with further targets at $31.48 and $31.74, suggesting room for continued gains. On the downside, key support levels include $30.58, $30.32, and $30.07, providing a buffer in case of selling pressure.

Traders should monitor the $30.86 level closely; holding above it keeps the outlook bullish, while a break below could signal a sharper decline.