Gold (XAU) Silver (XAG) Daily Forecast: Prices Rally Amid Trade War Fears, USD Strength

Market Overview

Gold prices (XAU/USD) climbed during the Asian session on Monday, reaching an intra-day high of $2,884 as investors sought safety amid growing trade tensions. The rally came in response to former U.S. President Donald Trump’s announcement of a 25% tariff on steel and aluminum imports, reigniting fears of a global trade war.

Market participants worry that these tariffs could escalate economic uncertainty and lead to higher inflation, which historically supports gold as a hedge against rising prices. However, gold’s upward momentum could face resistance due to a strong U.S. dollar (USD), buoyed by robust employment data released on Friday.

The U.S. economy added 143,000 jobs in January—slightly below expectations—while the unemployment rate unexpectedly dropped to 4.0%, signaling labor market resilience.

Federal Reserve officials, including Neel Kashkari and Austan Goolsbee, have expressed concerns about policy uncertainty, making it difficult to predict inflation trends. Traders are closely watching Fed Chair Jerome Powell’s upcoming congressional testimony and key U.S. inflation data to gauge the central bank’s next moves.

Silver Extends Gains but Faces Resistance from USD Strength

Silver (XAG/USD) followed gold’s lead, rising to an intra-day high of $32.08 before settling at $32.04. The bullish momentum in silver mirrors gold’s price action, driven by renewed trade war fears and concerns over inflationary pressures stemming from Trump’s tariff policies.

While safe-haven demand has lifted silver prices, the metal faces headwinds from a strengthening U.S. dollar. A firm greenback typically limits gains for commodities priced in USD, making them more expensive for foreign investors.

Traders are also monitoring industrial demand for silver, particularly in the electronics and solar energy sectors, which could further influence price movements.

Short-Term Forecast

Gold prices (XAU/USD) remain bullish above $2,859.59, with resistance at $2,886.95. A breakout could push prices higher, while a drop below support may trigger selling. Silver (XAG/USD) consolidates above $31.89, eyeing $32.53.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is holding steady at $2,878.94, up 0.01%, as buyers defend key support levels. The pivot point at $2,859.59 is acting as a strong foundation, keeping the short-term bullish trend intact. With the 50-day EMA at $2,852.45 supporting price action, gold appears well-positioned for further gains.

The next challenge for bulls is $2,886.95, followed by $2,906.90—a breakout above these levels could push prices toward fresh highs. However, if gold slips below $2,859.59, selling pressure may accelerate, testing support at $2,834.52 and $2,812.95.

The upward trendline remains intact, suggesting continued strength. Traders should watch for a decisive move above $2,886.95 to confirm momentum.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $32.04, down 0.05%, as the market consolidates above key support. The pivot point at $31.89 is proving to be a crucial level—staying above it keeps silver in bullish territory, while a breakdown could trigger selling pressure.

The 50-day EMA at $31.99 aligns closely with the current price, acting as dynamic support, while the 200-day EMA at $31.23 suggests strong buying interest on dips. A push above $32.53 could open the door to $32.92, reinforcing the uptrend.

If silver drops below $31.89, expect a decline toward $31.37, with further downside risks at $30.96. The upward trendline remains intact, supporting a continued bullish outlook.