Gold (XAU) Silver (XAG) Daily Forecast: Safe-Haven Demand Boosts Bullish Outlook

Market Overview

Gold prices (XAU/USD) started the week on a bullish note, maintaining strong support around the $2,940 level as investors flocked to safe-haven assets amid growing economic uncertainty. Concerns over US trade policies and a weakening US Dollar contributed to gold’s upward momentum. As of Monday, gold is trading at $2,940, extending gains for the eighth consecutive week.

According to market analysts, the bullish trend is largely driven by investor anxiety surrounding US trade policies, which could have significant ramifications for the global economy. “The uncertainty over US tariffs is pushing investors toward safe-haven assets like gold,” said Michael Hewson, Chief Market Analyst at CMC Markets.

However, gains in gold remain capped due to expectations of prolonged higher interest rates by the Federal Reserve. Despite inflationary pressures, the Fed has shown little inclination to cut rates, which is keeping the upside for gold limited.

US Inflation Data and Federal Reserve Outlook Key for Gold

Investors are keenly watching the upcoming US Personal Consumption Expenditures (PCE) Price Index report, scheduled for release on Friday. As the Fed’s preferred inflation gauge, a lower PCE reading could increase hopes for a rate cut, potentially weakening the US Dollar and boosting gold prices. Conversely, a higher reading may bolster the dollar, putting pressure on gold.

Additionally, other key economic indicators, including Thursday’s US Q4 GDP print and Durable Goods Orders, will be closely monitored for clues on the Federal Reserve’s next moves. The latest hawkish FOMC minutes suggest that the Fed may keep interest rates elevated for an extended period, which could slow down gold’s gains.

Silver Prices Supported by Weak Dollar and Trade Uncertainty

Silver (XAG/USD) is also riding the wave of safe-haven demand, trading at $32.68 after reaching an intraday high of $32.76. The weaker US Dollar, coupled with uncertainties surrounding US trade policies, is supporting silver’s bullish momentum. However, like gold, silver’s gains are tempered by expectations of higher interest rates.

Looking ahead, the market’s focus remains on the US inflation data and Federal Reserve’s interest rate outlook. Any dovish shift by the Fed could spur further gains in gold and silver, whereas continued hawkishness may limit upside potential.

Investors are advised to monitor these key indicators closely, as they are likely to shape the market’s direction in the coming weeks.

Short-Term Forecast

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,940.57, showing a modest gain of +0.07%. It’s currently above the pivot point at $2,918.46, which keeps the outlook bullish for now. If gold can break above the immediate resistance at $2,955.72, we could see a push towards $2,985.93.

However, if it falls below the pivot point, selling pressure could take it down to the first support at $2,881.92 and potentially $2,851.41.

The 50 EMA at $2,917.22 is acting as short-term support, reinforcing the bullish momentum. Meanwhile, the 200 EMA at $2,823.62 suggests strong long-term support. As long as prices stay above $2,918.46, the trend remains upward.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $32.68, slightly down by -0.03%. It’s currently above the pivot point at $32.53, which keeps the bullish outlook intact. If silver can break above the immediate resistance at $33.29, we could see a move toward $33.91.

On the downside, if prices fall below $32.53, it may trigger selling pressure, targeting support at $32.08 and potentially $31.51.

The 50 EMA at $32.53 provides short-term support, while the 200 EMA at $31.62 indicates strong long-term support. An upward channel pattern is in play, suggesting continued bullish momentum as long as prices stay above $32.53. For now, silver remains on a cautiously bullish track.