Gold (XAU) Silver (XAG) Daily Forecast: Easing Policies Boost Metals, $2,643 and $29.50 in Focus

Market Overview

Gold (XAU/USD) kicked off 2025 with bullish sentiment, trading near $2,627 after a record-breaking 2024. The precious metal surged over 26% last year, marking its strongest annual performance since 2010.

Central banks’ robust buying activity, easing monetary policies, and geopolitical uncertainties were key drivers of gold’s remarkable rally. The metal hit an all-time high of $2,790.15 on October 31, fueled by growing investor confidence.

Market analysts predict continued support for gold in 2025, citing higher central bank demand and a potential boost from gradual Federal Reserve rate cuts. Some forecasts suggest gold could reach $3,000 per ounce as global monetary easing and geopolitical risks persist.

Silver’s Gains Tempered by Economic Concerns

Silver (XAG/USD) is trading at $28.91, reflecting minor losses but maintaining its upward trajectory from 2024, where it gained nearly 22%, its best year since 2020. Rising demand and easing global monetary policies underpinned the rally.

However, the outlook for silver is clouded by potential economic headwinds, including inflation concerns and the impact of President-elect Trump’s proposed tariffs on living costs.

The Federal Reserve’s cautious stance on rate cuts in 2025 could also limit silver’s upside potential.

US Dollar Weakness Bolsters Precious Metals

The US Dollar remains subdued, trading near 108.00, as traders assess the Federal Reserve’s restrained approach to rate cuts. Treasury bond yields dropped by about 2%, adding pressure on the dollar.

The Fed’s latest guidance suggests fewer rate cuts in 2025, contributing to uncertainty in monetary policy under the incoming administration.

Both gold and silver are positioned for continued strength despite challenges like a stronger dollar and slower Fed easing. Central banks’ demand for gold-backed Exchange Traded Commodities (ETCs) and heightened geopolitical risks are expected to support the metals in the coming months.

Short-Term Forecast

Gold prices near $2,627 reflect cautious optimism, with key resistance at $2,643 and pivotal support at $2,602 shaping near-term momentum. Silver holds below $29, facing bearish pressures.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,624.26, up 0.17% in the last session, reflecting cautious optimism. On the 4-hour chart, the pivot point at $2,628.03 serves as a crucial threshold, with immediate resistance at $2,643.41 and further upside capped by $2,664.20. On the downside, support is seen at $2,602.31, with additional stability at $2,584.16.

Technical indicators show mixed signals: gold is trading above its 50 EMA at $2,618.34, suggesting mild bullish sentiment, but remains below the 200 EMA at $2,632.83, reinforcing a longer-term bearish bias.

The downward trendline near $2,628 adds pressure, making this level pivotal for the near-term outlook. A break above could ignite bullish momentum, while failure to hold may signal further declines.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $28.90, down 0.19%, reflecting subdued sentiment as it hovers below the pivot point at $29.90. Immediate resistance is positioned at $29.50, with further hurdles at $29.88. On the downside, support is found at $28.51, followed by $28.10, offering key levels for traders to watch.

Technically, silver remains under pressure, trading below its 50 EMA at $29.26 and 200 EMA at $29.98, signaling bearish momentum. A break above $29.90 could reignite bullish interest, but failure to overcome this level reinforces the downside bias.