Gold (XAU) Silver (XAG) Daily Forecast: Can Gold Hold $2,900 Support Amid Trade War Fears?

Market Overview

Gold prices (XAU/USD) is trading at $2,923 after it climbed to $2,942, extending their bullish momentum as investors seek safe-haven assets amid escalating trade tensions. The rally follows U.S. President Donald Trump’s decision to impose a 25% tariff on steel and aluminum imports, sparking fears of higher inflation and economic uncertainty.

Markets anticipate that these protectionist policies could drive up input costs, leading to broader inflationary pressures. “Investors are treating gold as an inflation hedge, particularly as protectionist measures raise economic risks,” noted James McCarthy, a senior commodities strategist at New York Gold Advisors.

However, gold faces resistance as the U.S. Dollar Index (DXY) strengthened to a one-week high, making the metal more expensive for foreign buyers. Additionally, Friday’s strong U.S. employment data has reinforced expectations that the Federal Reserve may maintain high interest rates, limiting gold’s upside.

Silver Slips as Stronger Dollar Weighs on Prices

Silver (XAG/USD) rebounds to $31.99, after hitting an intra-day low of $31.64, pressured by the strengthening U.S. dollar. The greenback gained traction after Trump’s tariff announcement fueled speculation about prolonged inflation.

Despite the dip, silver continues to benefit from safe-haven demand, as ongoing market uncertainty keeps investors cautious. “Silver’s industrial demand remains strong, but short-term price movements are being dictated by macroeconomic factors,” said Maria Gomez, a metals analyst at Global Commodity Insights.

Market Outlook: Inflation Data and Fed Policy in Focus

Looking ahead, investors will closely watch upcoming U.S. inflation data and any signals from Federal Reserve policymakers regarding interest rates. A stronger-than-expected inflation reading could boost gold further, while any hints of Fed rate cuts may soften the dollar, giving silver a lift.

For now, market sentiment remains cautious, with gold maintaining its bullish trajectory and silver finding support despite short-term volatility.

Short-Term Forecast

Gold (XAU/USD) holds firm at $2,923, eyeing resistance at $2,942. A breakout could push prices toward $2,965, while support at $2,906 must hold to sustain bullish momentum.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is holding firm at $2,923.18, posting a modest 0.03% gain, as buyers maintain control above the key $2,906.57 pivot level. The metal remains in an upward channel, supported by the 50-day EMA at $2,874.98, reinforcing the bullish trend.

A breakout above $2,942.81 could propel gold toward the next resistance at $2,965.11, extending its rally.

On the downside, initial support is seen at $2,881.13, with a deeper pullback potentially testing $2,852.56. A break below the pivot could shift momentum toward sellers. With geopolitical uncertainty and rate cut expectations, gold remains a favored safe-haven asset. For now, as long as $2,906.57 holds, the bullish bias remains intact.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is holding steady at $31.99, up 0.04%, after testing key resistance. Despite recent strength, the metal is at risk of a bearish breakout, as it struggles to stay above the $32.03 pivot level. The 50-day EMA at $32.02 is acting as short-term support, but failure to hold could push prices toward $31.45, with further downside at $30.96.

On the upside, a decisive break above $32.53 could fuel a rally toward $32.99, reinforcing the bullish trend. However, with weak momentum, silver may face selling pressure.

If the upward channel breaks, expect a test of lower supports. Traders should watch for a sustained move above $32.03 to confirm direction.