Gold (XAU) Silver (XAG) Daily Forecast: Geopolitical Tensions Boost Gold, Silver Eyes $31.15 Breakout

Market Overview

Gold (XAU/USD) is holding firm near $2,650 despite a strong U.S. dollar, benefiting from geopolitical uncertainties and trade war fears. Ongoing tensions in the Middle East and fears of escalating trade disputes have bolstered gold’s safe-haven appeal.

However, silver continues to struggle, trading around $31, as higher U.S. bond yields and a robust dollar cap its gains.

The Federal Reserve’s Influence on Precious Metals

The Federal Reserve’s cautious stance on interest rate cuts has further impacted precious metals. Markets are pricing in a 70% likelihood of a 25-basis-point rate cut in December, according to the CME Group’s FedWatch Tool.

Despite this, recent U.S. labor market data revealed strength, with job openings rising to 7.74 million in October, up from 7.37 million, suggesting a resilient economy.

Treasury yields remain elevated, supporting the U.S. dollar but limiting gold’s upward potential. San Francisco Fed President Mary Daly emphasized the economy’s resilience while signaling room for future rate cuts.

These mixed signals have left traders hesitant to make aggressive bets on gold’s direction.

Silver’s Long-Term Potential Amid Short-Term Pressures

Silver faces similar headwinds from the strong dollar and rising yields but has positive long-term drivers. China, the world’s largest silver consumer, is expected to drive demand through 2025, particularly in electronics and solar energy sectors.

Additionally, silver Exchange-Traded Products (ETPs) have seen inflows for the first time in three years, reflecting growing investor interest.

The Silver Institute forecasts a supply deficit of 182 million ounces in 2024, adding upward pressure on prices. Analysts predict silver could reach $36-$38 per ounce by 2025, buoyed by demand from industries like artificial intelligence and renewable energy.

Short-Term Forecast

Gold (XAU/USD) holds near $2,650, signaling a mildly bullish trend supported by geopolitical tensions. Silver (XAG/USD) eyes breakout above $31.16, driven by an ascending triangle pattern.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,649.83, up 0.22%, holding above its pivot point of $2,643.40. This suggests a mildly bullish tone, with immediate resistance at $2,655.67 and further targets at $2,665.23 and $2,677.13. On the downside, support lies at $2,634.74, followed by $2,621.48 and $2,610.79.

The 50-day EMA at $2,643.63 aligns with the pivot, reinforcing support, while the 200-day EMA at $2,647.96 adds strength to the upward bias.

A symmetrical triangle pattern indicates that a breakout, either above $2,655.67 or below $2,643.40, will set the direction. Traders should watch for a decisive move to gauge the next trend.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is holding steady at $31.03, consolidating just above its pivot point of $30.87. An ascending triangle pattern suggests a potential bullish breakout, with immediate resistance at $31.16, followed by targets at $31.48 and $31.74.

On the downside, support levels are at $30.71, $30.36, and $30.05, creating a safety net for retracement. The 50-day EMA at $30.66 underpins the uptrend, while the 200-day EMA at $30.88 provides additional near-term strength.