Gold (XAU) Silver (XAG) Daily Forecast: China’s Gold Buying Fuels Price Gains

Market Overview

Gold (XAU/USD) continues its upward trend, trading near $2,670, with an intra-day high of $2,673. Rising geopolitical tensions, particularly in the Middle East following Syrian rebels’ takeover, have fueled safe-haven demand, pushing gold prices higher.

Additionally, China’s central bank resumed gold purchases after a seven-month hiatus, acquiring 160,000 fine troy ounces in November, further bolstering the yellow metal’s appeal.

Investor focus has also shifted to the Federal Reserve’s monetary policy amid expectations that President-elect Donald Trump’s economic strategies could drive inflation.

According to the CME FedWatch Tool, there is an 85% probability of a 25 basis point rate cut in December, but speculation about a pause in further cuts is strengthening the US Dollar, capping gold’s potential gains.

Silver Follows Gold’s Momentum, Trades Above $31.90

Silver prices mirrored gold’s strength, trading near $31.90 and reaching an intra-day peak of $32.06. The metal’s safe-haven status and its close correlation with gold have supported its gains.

Market uncertainty surrounding geopolitical instability and US economic policies has enhanced silver’s attractiveness as a store of value. However, like gold, silver’s rally faces resistance from a firming US Dollar.

China’s Role and Market Outlook

The People’s Bank of China’s renewed gold buying reflects broader global demand trends. Coupled with concerns over potential inflation stemming from Trump’s policies, this has solidified gold and silver as preferred hedges against economic and geopolitical uncertainties.

Traders now await the release of US consumer inflation data on Wednesday for further clues about the Federal Reserve’s trajectory. The interplay between geopolitical factors, China’s economic actions, and US policy shifts will remain pivotal in shaping the outlook for both gold and silver prices.

Short-Term Forecast

Gold and silver prices maintain bullish momentum, with gold near $2,670 and silver at $31.89. Geopolitical tensions and China’s renewed gold buying fuel demand.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,670.52, up 0.38%, as bullish momentum continues to dominate. The price is holding firmly above the pivot point at $2,657.20, supported by the 50-day EMA at $2,650.10 and the 200-day EMA at $2,648.20.

Immediate resistance is noted at $2,685.80, with further targets at $2,704.80, suggesting room for upward movement if buying interest persists.

On the downside, key support lies at $2,643.00, followed by $2,624.10, acting as critical safety nets. A sustained move above $2,657.20 reinforces the bullish outlook, while a break below could signal a sharp decline.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading near $31.90, up 0.20%, maintaining a bullish trajectory within an upward channel that provides solid support near the pivot point at $31.76. The 50-day EMA at $31.38 and the 200-day EMA at $31.08 reinforce this positive sentiment.

However, the upside is capped near $32.16, where a double-top formation suggests resistance. A breakout above $32.16 could target the next resistance at $32.60, while immediate support lies at $31.41, followed by $30.95.

The bullish bias holds above $31.76, but failure to sustain this level might signal a sharper correction.