Gold (XAU) Silver (XAG) Daily Forecast: Safe-Haven Demand Fuels Gains Amid Rising Treasury Yields

Market Overview

Gold (XAU/USD) is trading around $2,645, holding its upward trend as investors turn to safe-haven assets amid escalating geopolitical tensions and inflation concerns. The metal reached an intraday high of $2,645, supported by risk-off sentiment stemming from the ongoing Russia-Ukraine conflict and instability in the Middle East. Expectations of inflationary pressures due to US President-elect Donald Trump’s proposed trade policies further bolster gold’s appeal as a hedge against rising prices.

However, gold’s gains are tempered by the Federal Reserve’s cautious stance on rate cuts. December projections indicate a slower pace of easing in 2025, with policymakers expressing concerns about persistent inflation. As a result, the 10-year US Treasury yield climbed to an eight-month high, strengthening the US dollar and weighing on gold, which offers no yield.

Key events, including the FOMC meeting minutes and the US Nonfarm Payrolls report, could provide further clarity on the Fed’s policy path and influence gold prices this week.

Silver Gains on Risk-Off Sentiment and Inflation Hedging

Silver (XAG/USD) is trading near $30.15, benefiting from similar drivers as gold. The metal reached an intraday high of $30.18, supported by safe-haven demand and expectations of increased hedging against economic uncertainty. Concerns over inflation and ongoing conflicts in key regions continue to underpin silver’s upward momentum.

Short-Term Forecast

Gold (XAU/USD) holds steady near $2,645, with safe-haven demand and inflation concerns driving gains. A break above $2,641 pivot confirms bullish momentum; support at $2,614 remains crucial.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,640.50, up 0.17% as buyers maintain moderate control. The 4-hour chart reveals gold hovering near its pivot point at $2,641.08, a critical level for determining the next move. Immediate resistance stands at $2,663.30, with stronger barriers at $2,692.57.

On the downside, support is firm at $2,614.22, followed by a deeper level at $2,583.80. Technical indicators are mixed, with the 50-day EMA at $2,633.79 supporting a short-term bullish outlook, while the 200-day EMA at $2,641.41 aligns closely with the pivot, signaling potential consolidation.

Traders should watch for a sustained move above $2,641.08 to confirm bullish momentum, while a drop below could signal renewed selling pressure.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver prices edged higher, trading at $30.15, up 0.60%, signaling a bullish tone in the short term. The 4-hour chart highlights a critical pivot point at $29.88, serving as a key benchmark. Immediate resistance looms at $30.43, with stronger resistance at $30.93, while support levels are identified at $29.17 and $28.78.

The 50-day EMA of $29.65 supports the bullish momentum, but caution is advised as the 200-day EMA at $30.31 suggests a tighter ceiling. A sustained hold above $29.88 could spark further buying interest, targeting $30.43, while a breach below might lead to a sharper downside trend.