Gold (XAU) Silver (XAG) Daily Forecast: Can Precious Metals Sustain Uptrend?

Market Overview

Gold prices (XAU/USD) extended their upward trajectory, reaching an intra-day high of $2,729, driven by renewed demand for safe-haven assets. The latest rally follows U.S. President Donald Trump’s remarks on potential tariffs, fueling concerns over global trade tensions. This marks the highest level for gold since November 6, reflecting investor caution amid ongoing economic uncertainties.

Falling U.S. Treasury bond yields have further bolstered gold’s appeal, with expectations growing that the Federal Reserve will implement at least two interest rate cuts this year. Lower yields reduce the opportunity cost of holding gold, a non-yielding asset, enhancing its attractiveness in times of economic uncertainty.

However, expectations that Trump’s trade policies could spur inflation and prompt the Fed to maintain a hawkish stance have supported the U.S. Dollar (USD), which rebounded from a two-week low. Additionally, positive sentiment in equity markets has acted as a cap on gold’s gains, as risk appetite persists among investors.

Silver Prices Surge on Industrial Demand and Market Volatility

Silver (XAG/USD) is currently trading at $30.62, having touched an intra-day high of $30.74, as investors turn to the metal for both its safe-haven qualities and industrial applications. Expectations of rate cuts by the Fed, coupled with declining bond yields, have provided support for silver’s rally.

In addition to geopolitical concerns, silver is benefiting from robust industrial demand, particularly from sectors such as renewable energy and technology, where the metal plays a crucial role in solar panels and electronics. This dual demand dynamic positions silver favorably in a volatile economic environment.

U.S. Policy and Economic Data Shape Precious Metals Outlook

On the U.S. economic front, the dollar’s rebound is driven by concerns that tariffs on Canada and Mexico, set at 25%, could push inflation higher. A stronger dollar typically weighs on gold and silver prices by making them more expensive for foreign investors.

Recent economic data, including the Producer Price Index (PPI) and Consumer Price Index (CPI), suggest that inflation may be cooling, increasing the likelihood of Fed rate cuts later this year. This could further support gold prices in the long run by reducing the attractiveness of yield-bearing assets.

Looking ahead, investors will closely monitor key events such as the Bank of Japan’s policy meeting and the release of global PMI data, which could inject further volatility into precious metal markets.

While gold remains under pressure from a recovering dollar, its status as a hedge against economic uncertainty continues to provide underlying support.

Short-Term Forecast

Gold prices are expected to remain bullish above $2,717.56, with resistance at $2,741.28. Silver eyes further gains above $30.45, targeting $30.93, while downside risks persist amid market uncertainty.

Gold Prices Forecast: Technical Analysis

Gold prices are currently trading at $2,727.24, up 0.71%, maintaining a bullish stance above the key pivot point at $2,717.56. The metal continues to find support from global economic uncertainties, with traders eyeing the next resistance at $2,741.28, followed by a stronger barrier at $2,760.20.

Technical indicators show gold trading well above the 50-day EMA at $2,689.89, reinforcing the positive momentum.

However, immediate support lies at $2,693.34, with deeper levels at $2,676.69, aligning with the long-term trend anchored by the 200-day EMA at $2,661.69. A sustained move above the pivot keeps the bullish outlook intact, while a break below could invite fresh selling pressure.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is currently trading at $30.62, up 0.30%, holding above the key pivot point at $30.45, which suggests continued bullish sentiment. The metal has found strong short-term support near the 50-day EMA at $30.27, reinforcing the uptrend.

A sustained move above immediate resistance at $30.93 could open the door to further gains, with the next target at $31.48.

However, if silver falls below the pivot, immediate support is seen at $29.99, with deeper levels at $29.51, aligning with the 200-day EMA at $30.29, which could act as a buffer against further declines. As long as silver holds above $30.45, the bullish outlook remains intact, but a break below may invite selling pressure.