Gold (XAU) Silver (XAG) Daily Forecast: Bullish Signals Emerge Despite Pre-NFP Uncertainty

Market Overview

Gold prices (XAU/USD) maintained their bullish trajectory, trading around $2,638 after hitting an intraday high of $2,644. The rally reflects investor optimism over potential Federal Reserve rate cuts in December, which continue to pressure the US Dollar.

Additionally, geopolitical uncertainties, including the ongoing Russia-Ukraine conflict, are bolstering gold’s safe-haven appeal. Silver prices (XAG/USD) followed a similar trend, trading at $31.37 after reaching an intraday peak of $31.44.

Like gold, silver’s strength stems from expectations of Fed easing, a softer dollar, and safe-haven buying, although both metals face cautious trading ahead of the US Nonfarm Payrolls (NFP) report.

Weak Dollar and Mixed Economic Data Bolster Precious Metals

The US Dollar index weakened further after job market data revealed higher-than-expected Initial Jobless Claims, which rose by 9,000 to 224,000 for the week ending November 29. However, Continuing Jobless Claims dropped by 23,000 to 1.871 million, offering a mixed economic outlook.

Federal Reserve Chair Jerome Powell noted that the US economy is outperforming earlier expectations, signaling potential caution in further rate cuts.

Still, market sentiment remains clouded by uncertainties surrounding President-elect Donald Trump’s proposed trade tariffs. These concerns have tempered risk appetite, directing more attention to gold and silver as safe-haven investments.

Key Focus on Nonfarm Payrolls and Fed Decision

Investors are pricing in a 70% probability that the Federal Reserve will reduce interest rates by 25 basis points at its December meeting. The remaining 30% indicates a potential pause. This speculation, combined with low 10-year US Treasury yields, continues to weigh on the dollar, indirectly supporting gold prices.

All eyes are now on Friday’s NFP report, which will provide critical insights into the labor market and influence the Fed’s upcoming decision. A weaker-than-expected NFP figure could solidify rate cut expectations, potentially driving gold prices higher.

Short-Term Forecast

Gold (XAU/USD) and Silver (XAG/USD) maintain bullish momentum amid Fed rate cut speculation and a weaker US Dollar. Key resistance targets include $2,644 for gold and $31.48 for silver.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) has shown a modest recovery, trading at $2,640.30, up 0.32% during the session. Despite the upward move, prices remain just below the critical pivot point at $2,644.90, which serves as a key inflection level. Immediate resistance is positioned at $2,657.02, with further targets at $2,666.24 and $2,676.34.

On the downside, support levels stand at $2,634.00, $2,623.66, and $2,613.18. The 50-day EMA at $2,642.35 suggests near-term stability, while the 200-day EMA at $2,646.99 reinforces resistance at higher levels.

Traders should monitor a potential break above $2,644.90 to confirm bullish momentum, targeting higher levels. However, sustained trading below this pivot could trigger renewed bearish sentiment, eyeing support levels near $2,623.66.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $31.37, up 0.11%, showing steady upward momentum. The price hovers above the pivot point at $31.14, signaling a bullish bias. Immediate resistance lies at $31.48, followed by $31.74 and $31.99, indicating potential targets for further gains.

On the downside, support levels are positioned at $30.87, $30.58, and $30.32. The 50-day EMA at $31.03 and the 200-day EMA at $30.96 reinforce near-term support, providing a stable base for price action.

Traders should monitor the $31.14 pivot closely; a sustained move above this level could confirm bullish sentiment, targeting higher resistance zones. However, a dip below $31.14 may shift momentum, prompting potential selling pressure.