Gold (XAU) Silver (XAG) Daily Forecast: Can Fed Policy Slow Gold’s Bullish Trend Toward $2,715?

Market Overview

Gold prices surged to an intra-day high of $2,618, defying the typical headwind of a stronger US Dollar. This rally is driven by investor demand for safe-haven assets amid heightened geopolitical risks and economic uncertainty.

The Federal Reserve’s hawkish stance, which suggests prolonged higher interest rates, has pushed US Treasury bond yields to multi-month highs. While these factors strengthen the dollar, which often pressures non-yielding assets like gold, the broader market uncertainty continues to support the metal’s bullish trajectory.

Silver Prices Edge Higher, Testing $29.66

Silver prices (XAG/USD) climbed to $29.66 during the session, bolstered by its dual appeal as both a safe-haven and industrial metal. Geopolitical tensions and inflation concerns have spurred demand, enabling silver to maintain its upward momentum.

Despite the robust US Dollar, silver’s role in industrial applications and as a store of value has provided significant support. Analysts note that ongoing uncertainty could continue to benefit the metal, particularly if inflation risks persist.

Fed’s Policy Creates Mixed Signals for Precious Metals

The Federal Reserve’s cautious outlook on interest rate cuts has bolstered the US Dollar, pushing it near a two-year high. Rising bond yields further support the dollar, creating challenges for gold and silver, which typically struggle in such an environment. However, geopolitical and economic risks are keeping investor interest alive in these metals.

Traders are closely watching upcoming US economic data, including the Q3 GDP report and the Fed’s preferred inflation gauge, the PCE Price Index, which could shape market direction.

While the dollar’s strength limits the upside potential for gold and silver, safe-haven demand amid persistent market uncertainties ensures these metals remain resilient.

Short-Term Forecast

Gold prices are likely to remain range-bound between $2,583.97 and $2,663.39, with resistance at $2,715.68 as a key breakout level. Silver consolidates near $29.67; a bullish breakout could target $30.75, while downside risks may test $28.67 amid cautious market sentiment.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,605.73, up 0.78% as it navigates a cautious market tone. The pivot point at $2,632.28 serves as a critical level, with immediate resistance at $2,663.39 and next resistance at $2,715.68.

On the downside, support is at $2,583.97, with further levels at $2,537.62. The 50-day EMA at $2,651.28 and the 200-day EMA at $2,654.80 suggest the price is below key moving averages, reflecting a potential bearish setup.

A break above the pivot point could reignite bullish momentum, targeting $2,663.39, while failing to sustain above this level may invite selling pressure toward $2,583.97.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $29.43, up 0.27%, as it consolidates within a symmetrical triangle pattern. The pivot point at $29.67 is a key threshold for direction. Immediate resistance is at $30.75, followed by $32.13, while support levels sit at $28.67 and $27.71.

The 50-day EMA at $30.66 and the 200-day EMA at $31.08 indicate a bearish sentiment as prices remain below these levels.

A breakout above $29.67 could signal a bullish shift, targeting $30.75, while failure to sustain above the pivot may lead to a slide toward $28.67. Traders should watch for a breakout from the triangle to confirm the next trend direction.