Gold (XAU) Silver (XAG) Daily Forecast: Profit-Taking Pullback or Trend Reversal?

Market Overview

Gold prices (XAU/USD) retreated to $2,927 after hitting an all-time high, driven primarily by profit-taking as traders locked in gains from the recent surge. This pullback followed an overbought condition, prompting investors to capitalize on the rally.

Despite this dip, gold’s overall bullish trend remains intact, underpinned by a weaker US dollar and ongoing global economic uncertainty. The US dollar has been under pressure amid expectations of potential Federal Reserve rate cuts.

Market sentiment is divided, with Atlanta Fed President Raphael Bostic suggesting room for two rate cuts this year, while other Fed officials remain cautious due to persistent inflation concerns. A weaker dollar typically supports gold prices, as it makes the metal cheaper for foreign buyers.

Gold’s Safe-Haven Appeal Amid Trade Uncertainty

Concerns over former US President Donald Trump’s proposed tariffs, which could escalate into a global trade war, are boosting gold’s appeal as a safe-haven asset. Investors are cautious about the potential economic impact of these trade restrictions, leading to increased demand for gold as a hedge against uncertainty.

Additionally, fears of rising inflation from these policies continue to support gold’s value, as the metal is often viewed as a reliable store of wealth in inflationary periods.

Silver Holds Steady Amid Industrial Demand and Dollar Weakness

Silver (XAG/USD) is trading at $32.78, experiencing a slight dip to an intra-day low of $32.74 due to mixed market signals. However, the metal remains well-supported by strong industrial demand and a weaker US dollar, which boosts its attractiveness to investors.

Unlike gold, silver benefits from its dual role as both a safe-haven asset and an industrial metal, keeping its bullish trend intact.

Short-Term Forecast

Gold remains bullish above $2,918.46, targeting $2,955.72. A break below could see $2,880.80. Silver supports bullish momentum above $32.55.

Gold Prices Forecast: Technical Analysis

Gold is currently trading at $2,927.62, showing a slight dip of 0.02%. Despite this minor pullback, the overall sentiment remains bullish as long as prices stay above the key pivot point at $2,918.46.

This level is crucial because it’s where buyers are likely to step in, supporting the upward trendline that has been guiding prices higher. If gold maintains its position above this pivot, it could rally towards the immediate resistance at $2,955.72, with the next target at $2,985.93.

However, a break below $2,918.46 could trigger selling pressure, potentially pushing prices down to the first support at $2,880.80 or even $2,851.31. Keep an eye on the 50 EMA at $2,911.48, which reinforces this bullish outlook.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is currently trading at $32.78, showing a slight decline of 0.04%. Despite this minor dip, the outlook remains bullish as long as prices hold above the key pivot point at $32.55.

This level is crucial because it’s been acting as solid support, maintaining the upward trendline that has supported silver’s recent gains. If silver continues to trade above $32.55, it could aim for the immediate resistance at $33.29, with the next target at $33.91.

However, if it falls below $32.55, expect a potential drop to the first support at $32.08 or even $31.51. Keep an eye on the 50 EMA at $32.49, which supports the bullish bias, reinforcing this positive outlook.