Gold (XAU) Silver (XAG) Daily Forecast: Can Gold Stay Above $2,677 Pivot Amid Rising Treasury Yields?

Market Overview

Gold (XAU/USD) continues its downward trend, trading near $2,688.07 after hitting an intra-day low of $2,679. Strong U.S. jobs data has reinforced the Federal Reserve’s hawkish stance, dampening market expectations for aggressive rate cuts.

According to the U.S. Bureau of Labor Statistics, December’s nonfarm payrolls increased by 256,000, exceeding forecasts of 160,000 and November’s 212,000. Additionally, the unemployment rate fell to 4.1% from 4.2%.

These robust figures have bolstered the U.S. dollar, which remains near a two-year high, and driven Treasury yields higher. Consequently, non-yielding assets like gold are less attractive to investors.

Despite these pressures, uncertainty over the U.S. economic outlook, coupled with global geopolitical tensions, has kept gold’s safe-haven appeal intact.

Silver Declines Amid Fed’s Hawkish Policy

Silver (XAG/USD) also faced selling pressure, trading at $30.42 and briefly touching an intra-day low of $30.10. Similar to gold, silver is weighed down by the strong U.S. dollar and rising bond yields. The Federal Reserve’s cautious approach to rate cuts further erodes the appeal of silver as a non-interest-bearing asset.

Geopolitical Tensions Offer Mixed Support

Geopolitical uncertainty continues to lend limited support to gold prices. Tensions in the Middle East, along with sanctions targeting Russia’s energy sector, have heightened investor caution. The U.S. and UK imposed sanctions on nearly 200 vessels involved in Russia’s oil exports, adding strain to global markets.

As the market awaits Wednesday’s U.S. inflation data, gold and silver prices remain pressured by a strong U.S. labor market and hawkish monetary policy. However, geopolitical risks could keep some demand alive for these traditional safe havens.

Short-Term Forecast

Gold hovers near $2,688, with bullish potential above $2,677 pivot. Silver trades at $30.42, holding support at $30.50. Both metals face pressure from strong U.S. dollar and rising yields.

Gold Prices Forecast: Technical Analysis

Gold is trading at $2,688.07, down a modest 0.05% as the market consolidates within a tight range. The pivot point at $2,677.98 serves as a key level to watch, with bullish momentum intact above this threshold. Immediate resistance is positioned at $2,698.35, followed by $2,720.76, where sellers could re-enter the market.

On the downside, support holds at $2,663.63, with stronger levels near $2,645.18, reinforced by the 200-day EMA at $2,648.48. The 50-day EMA at $2,668.68 indicates short-term upward strength, while the overall trend remains cautious.

Traders should monitor a potential breakout above $2,698.35 to confirm bullish sentiment or a dip below $2,677.98, which may accelerate selling pressure.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading at $30.42, down 0.55% as the market tests key technical levels on the 4-hour chart. The pivot point at $30.50 is a critical threshold—holding above this level keeps the bullish outlook intact. Immediate resistance lies at $30.95, with further upside targets at $31.47.

On the downside, support is seen at $29.80, with stronger backing near $29.41. The 50-day EMA at $30.15 reinforces near-term bullish sentiment, while the 200-day EMA at $30.01 suggests a strong base for long-term stability.

A sustained move above $30.50 could pave the way for further gains, but a break below risks triggering sharper declines toward $29.80.