Gold (XAU) Silver (XAG) Daily Forecast: Can FOMC Minutes Trigger a Breakout Above $2,650 for Gold?

Market Overview

Gold prices (XAU/USD) are trading within a narrow range, hovering between $2,649.07 and $2,651.60, showing resilience despite a strong US dollar and rising Treasury yields. The cautious tone in the market comes ahead of the Federal Open Market Committee (FOMC) Minutes report, which could offer further insight into the Federal Reserve’s future rate decisions.

Gold’s appeal as a non-yielding asset remains under pressure due to the 10-year US Treasury yield reaching its highest point since April. The robust performance of the US economy has fueled expectations that the Federal Reserve will slow its pace of rate cuts, limiting gold’s upside potential. However, lingering inflation concerns and geopolitical risks continue to provide a safety net for the yellow metal.

Silver Shows Resilience Amid Mixed Signals

Silver prices (XAG/USD) are holding near $30.03, with an intra-day high of $30.1565, reflecting cautious optimism among traders. Like gold, silver faces headwinds from the strong dollar and higher yields, but its dual role as an industrial and safe-haven asset supports its current price levels.

Upcoming FOMC Minutes are expected to play a critical role in determining the near-term direction for both metals. Inflationary concerns and geopolitical uncertainties further bolster silver’s position as a hedge against market instability.

Economic Data Shapes Market Sentiment

Recent US economic data adds to market caution. The ISM Non-Manufacturing PMI rose to 54.1 in December, while the Job Openings and Labor Turnover Survey (JOLTS) showed an unexpected increase in job openings to 8.098 million in November. These reports reinforce the narrative of a resilient economy, reducing the likelihood of aggressive Fed rate cuts.

While rising bond yields continue to weigh on gold and silver, persistent inflation concerns and geopolitical risks may provide support, keeping investors engaged with these key assets.

Short-Term Forecast

Gold prices hover near $2,649.07, with a breakout above $2,650 signaling bullish momentum. Silver struggles below $30.31, facing resistance at $30.73. FOMC Minutes remain key.

Gold Prices Forecast: Technical Analysis

Gold prices are trading at $2,649.07, up 0.02%, as the market remains balanced near the pivot point of $2,639.26. The 4-hour chart reveals a symmetrical triangle pattern, with resistance extending near $2,650.

A breakout from this formation could signal the next trend direction. Immediate resistance is at $2,663.30, with a stronger level at $2,692.57. On the downside, support is seen at $2,614.22 and $2,583.80.

The 50 EMA at $2,637.10 aligns with near-term support, while the 200 EMA at $2,641.93 reinforces the consolidation zone. Bullish momentum prevails above $2,639.26, but a break below this level could trigger sharp selling.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver prices are trading at $30.03, down 0.03%, as the market struggles to gain momentum below the pivot point of $30.31. A downward trendline is capping gains, extending resistance near $30.31, with additional hurdles at $30.73 and $31.43. On the downside, immediate support is seen at $29.44, followed by a stronger level at $28.79.

The 50 EMA at $29.74 suggests near-term pressure, while the 200 EMA at $30.30 aligns with the pivot point, reinforcing its importance. Bearish sentiment dominates below $30.31, but a breakout above this level could shift momentum toward the $30.73 target.