Gold (XAU) Silver (XAG) Daily Forecast: NFP Data to Test Safe-Haven Appeal of Metals

Market Overview

Gold (XAU/USD) continued its upward momentum, trading near $2,674, with intraday highs of $2,675. The metal’s appeal as a safe-haven investment remains robust amid uncertainty surrounding U.S. President-elect Donald Trump’s proposed tariffs.

Expectations that his economic policies could spur inflation further support gold’s rise as a hedge against rising prices. However, a stronger U.S. dollar, bolstered by steady Treasury yields, capped additional gains, making gold less attractive for foreign investors.

Silver (XAG/USD) traded at $30.26, reaching an intraday peak of $30.32. The metal mirrored gold’s trajectory, benefiting from inflation concerns and geopolitical risks. However, similar to gold, silver faces headwinds from the dollar’s strength and elevated bond yields, which limit its upside potential.

Federal Reserve’s Cautious Stance and Inflation Expectations

The Federal Reserve’s slower pace of rate cuts continues to influence market dynamics. Elevated U.S. Treasury yields and a robust dollar add pressure on gold and silver. Officials emphasize a data-driven approach, signaling only two quarter-point rate cuts in 2025. Persistent inflation, forecast to stay above 2%, remains a key concern, with policymakers adopting a cautious stance.

Traders are eyeing the U.S. Nonfarm Payrolls (NFP) report for further insights. Despite these challenges, gold remains poised for a second consecutive week of gains, reflecting its resilience amid market volatility.

Short-Term Forecast

Gold prices maintain a bullish tone near $2,674, driven by safe-haven demand and inflation concerns, with resistance at $2,690. Silver consolidates around $30.23, awaiting direction.

Gold Prices Forecast: Technical Analysis

Gold prices edged higher, trading at $2,673.71, up 0.13%, reflecting cautious optimism as the market consolidates around the pivot point at $2,662.26. The 4-hour chart highlights immediate resistance at $2,690.80, with a stronger barrier at $2,719.17.

On the downside, immediate support lies at $2,640.97, followed by a deeper level at $2,621.58. Technical indicators reinforce the bullish tone. The 50 EMA at $2,647.65 and the 200 EMA at $2,644.45 underscore short-term and long-term support, respectively. The RSI remains neutral, providing room for further upside if momentum strengthens.

A sustained break above $2,690.80 could pave the way for a push toward $2,719.17. Conversely, a drop below $2,662.26 may signal bearish momentum, targeting lower support levels.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading at $30.23, up 0.35%, as it hovers near the pivot point at $30.31, signaling a critical decision zone for traders. Immediate resistance is observed at $30.73, with a stronger hurdle at $31.43, setting up potential upside targets. On the downside, support levels are marked at $29.44 and $28.79, which may come into play if bearish momentum intensifies.

The technical outlook is mixed. The 50 EMA at $29.90 provides a short-term support base, while the 200 EMA at $30.29 reinforces the long-term pivot.

The RSI indicates neutral momentum, leaving room for either a breakout above $30.31 or a decline toward lower support levels. Sustained trading above $30.31 could ignite a bullish rally targeting $30.73 and beyond.