Gold (XAU) Silver (XAG) Daily Forecast: CPI Data and Bond Yields Shape Market Trends

Market Overview

Gold (XAU/USD) continued its decline, trading near 2,695, after briefly touching an intra-day low of 2,690. This drop reflects growing expectations that the Federal Reserve will pause rate cuts during its next meeting. A stronger US dollar, recovering from its earlier one-week low, further weighed on gold prices, dampening its safe-haven appeal.

US economic data added to the bearish sentiment for gold. The Consumer Price Index (CPI) rose by 0.4% in December, with the annual inflation rate increasing to 2.9% from 2.7%.

Core CPI, excluding food and energy, slowed to 3.2%, slightly exceeding market expectations. While the Fed’s potential for further rate cuts could support gold later in the year, the current policy stance limits its upside.

US Treasury bond yields eased from their 14-month highs, offering some relief to gold. Additionally, uncertainties around global trade policies and geopolitical tensions have tempered selling pressures, keeping gold from deeper declines.

Silver Shows Modest Gains

Silver (XAG/USD) gained mildly, trading at 30.64, supported by a weaker dollar and easing bond yields. The metal benefits as an alternative safe-haven asset amid mixed market sentiment and ongoing geopolitical uncertainties.

Market optimism regarding potential Fed policies has capped significant gains for silver, but its resilience highlights sustained investor interest.

Short-Term Forecast

Gold is trading at 2694.63, below its pivot at 2697.33, signaling bearish momentum. Silver holds steady at 30.64, remaining bullish above 30.55.

Gold Prices Forecast: Technical Analysis

Gold prices are hovering around 2694.63, reflecting a slight 0.06% dip for the day. The metal remains below the key pivot point at 2697.33, signaling a cautious bearish sentiment. Immediate resistance is positioned at 2720.76, with further barriers at 2745.74, while immediate support is observed at 2658.80, followed by a deeper level at 2633.37.

The 50-day EMA at 2668.35 reinforces short-term support, aligning with the broader bullish structure, while the 200-day EMA at 2652.12 highlights long-term stability. A sustained break above 2697.33 could shift momentum toward the upside, targeting higher resistance levels. Conversely, failure to reclaim the pivot may invite selling pressure, driving prices toward support at 2658.80.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading at 30.64, down 0.07%, reflecting a steady consolidation near its pivot point at 30.55. The metal remains bullish above this level, with immediate resistance at 31.09 and higher targets at 31.75. Conversely, a break below the pivot could trigger a bearish correction, testing support levels at 29.52 and potentially deeper at 28.79.

The 50-day EMA at 30.03 offers short-term support, while the 200-day EMA at 30.24 underscores the broader trend. The slight gap between these EMAs highlights a cautious market sentiment. Traders should monitor the pivot closely, as a move above 30.55 could signal a stronger rally, while a dip below it may shift momentum toward the downside.