Gold (XAU) Silver (XAG) Daily Forecast: Fed’s Cautious Stance Pressures Precious Metals Prices

Market Overview

Gold (XAU/USD) fell to $2,648 during Thursday’s session, maintaining its bearish trajectory as the Federal Reserve signaled a cautious approach to rate cuts. Hawkish comments from Fed Chair Jerome Powell and other FOMC members pushed US Treasury yields higher, pressuring gold, a non-yielding asset.

Meanwhile, silver (XAG/USD) also declined, mirroring gold’s performance amid a stronger US dollar and rising yields.

Fed Policy and Economic Data Weigh on Precious Metals

The Federal Reserve’s Beige Book, released Wednesday, highlighted slight growth in economic activity, fostering optimism about the US economy’s resilience.

Despite modest inflation, markets interpreted the report as a sign the Fed could slow or pause rate cuts, supporting bond yields.

“The Fed’s cautious tone is shifting investor sentiment, making non-yielding assets like gold less appealing,” said a market strategist.

US Nonfarm Payrolls (NFP) data, expected Friday, could further influence the market, with analysts projecting 146,000 new jobs in November. The outcome may shape the Fed’s next policy moves, affecting gold and silver prices in the near term.

Geopolitical Tensions Offer Limited Support

Although the risk-on sentiment has dampened demand for safe-haven assets, persistent geopolitical concerns are providing a floor for gold prices. The Russia-Ukraine conflict, coupled with ongoing trade policy concerns under President-elect Donald Trump, has sustained some investor interest in precious metals.

Silver found slight support from geopolitical uncertainties but faced headwinds from a stronger dollar and higher yields.

Short-Term Forecast

Gold (XAU/USD) remains bearish near $2,644 amid Fed policy tightening, while Silver (XAG/USD) consolidates, eyeing breakout above $31.48 for bullish momentum.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,648.36, slightly down by 0.07% during the session, but it hovers above its pivot point of $2,644.81. Technical analysis suggests a symmetrical triangle pattern, often signaling an impending breakout.

Immediate resistance lies at $2,657.02, with higher targets at $2,666.24 and $2,676.34. Key support levels include $2,632.46, $2,622.14, and $2,612.41.

The 50-day EMA at $2,646.51 reinforces near-term support, while the 200-day EMA at $2,644.79 aligns with the pivot, emphasizing this level’s importance. A move above $2,644.81 suggests potential bullish momentum, targeting higher resistance levels.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $31.21, down 0.28%, maintaining a slightly bearish tone as it hovers near the pivot point of $31.13. Immediate resistance levels are at $31.48, followed by $31.74 and $31.99, while support lies at $30.87, $30.58, and $30.32.

The 50-day EMA at $31.02 provides near-term support, with the 200-day EMA at $30.76 further reinforcing stability.

Technical indicators suggest cautious sentiment, with prices consolidating around the pivot. A break above $31.48 could reignite bullish momentum, targeting $31.74. However, a dip below $30.87 may trigger further selling pressure.