Gold (XAU) Silver (XAG) Daily Forecast: Safe-Haven Demand Drives Gold Stability

Market Overview

Gold prices (XAU/USD) recovered modestly, trading near $2,653.26 as geopolitical uncertainties and cautious Federal Reserve (Fed) expectations drive safe-haven demand.

However, gains remain capped due to a stronger US dollar and rising Treasury yields, as the Fed is expected to cut interest rates by 25 basis points this week.

Gold Rises as Investors Eye Fed Decision

Gold has regained momentum, recovering from recent losses as investors hedge against global uncertainties. The metal’s safe-haven appeal is bolstered by geopolitical tensions, including concerns over escalating conflicts and potential disruptions in key regions.

Despite this, the Fed’s cautious stance on future rate cuts is tempering gains. Analysts predict a 93% likelihood of a 25-basis-point rate cut, according to CME’s FedWatch Tool. The strengthening dollar, buoyed by higher Treasury yields, continues to weigh on non-yielding assets like gold.

However, the slowdown in inflation—reflected in softer CPI and PPI data—could limit aggressive Fed actions in 2024, offering some medium-term support for gold prices.

Silver Lags Behind Gold Despite Safe-Haven Appeal

Silver prices fell to $30.54, struggling to mirror gold’s modest rise. A stronger dollar and Treasury yield gains have made silver less attractive. Unlike gold, silver’s price dynamics are more influenced by industrial demand, which remains uncertain amid global economic volatility.

Despite recent losses, silver’s long-term outlook could benefit from renewed industrial activity and safe-haven demand if geopolitical tensions persist. The divergence between gold and silver highlights their differing market drivers, with silver remaining more volatile and sensitive to economic shifts.

Short-Term Forecast

Gold edges higher near $2,655, supported by safe-haven demand amid geopolitical risks. Silver trades at $30.54, with cautious bullish sentiment above the $30.43 pivot.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,653.26, edging up by 0.17% as buyers hold the upward momentum near the $2,645.22 pivot point. The price is comfortably above key support at $2,623.73, signaling strength, with the next supports at $2,605.19 if momentum falters.

Immediate resistance is at $2,672.71, with further upside targets at $2,693.50. The 50 EMA at $2,674.15 remains a crucial hurdle, while the 200 EMA at $2,662.07 highlights near-term stability.

The bullish trendline suggests further gains are possible if gold holds above the pivot, with geopolitical tensions and cautious market sentiment fueling demand. A drop below $2,645.22 could shift momentum, inviting sellers to test lower levels.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is currently trading at $30.545, slipping slightly by 0.05% during the session. The price is holding steady above the pivot point at $30.43, supported by an upward trendline, which keeps the bullish momentum intact. Immediate resistance stands at $30.87, with the next target at $31.45.

On the downside, $30.05 serves as key support, followed by $29.65 if sellers gain traction.

Despite hovering below the 50 EMA at $31.15 and the 200 EMA at $31.17, silver’s short-term outlook remains cautiously optimistic above the pivot. The upward trendline suggests buyers are still active, but a decisive break below $30.43 could signal a sharper selling trend.