Gold (XAU) Silver (XAG) Daily Forecast: Strong Demand Keeps XAU Above $2,900 & XAG at $32

Market Overview

Gold (XAU/USD) remains firmly above the $2,900 level, extending its bullish momentum for the second consecutive day. On Tuesday, gold reached an intra-day high of $2,915, as safe-haven demand continued to drive prices higher. Investors are closely monitoring U.S. trade policies, with President Donald Trump’s threat of reciprocal tariffs adding to global economic uncertainty.

In addition to trade tensions, speculation over potential Federal Reserve rate cuts has fueled gold’s rally. Market participants anticipate that the Fed could begin reducing rates in September or October, reinforcing demand for non-yielding assets like gold.

According to Fed Funds Futures, the market has now priced in a 40-basis-point rate cut in 2025. However, recent statements from Fed officials, including Philadelphia Fed President Patrick Harker and Governor Michelle Bowman, suggest that policymakers remain cautious due to persistent inflation risks.

Despite some pressure from a slight recovery in the U.S. dollar, gold remains well-supported as investors weigh the likelihood of lower interest rates and ongoing trade policy shifts.

Silver Climbs Above $32 as Investors Seek Stability

Silver (XAG/USD) is trading at $32.39, after briefly touching an intra-day high of $32.47. The metal’s strong performance has been driven by geopolitical risks and expectations of Fed policy easing.

As a key industrial and precious metal, silver’s gains have also been supported by concerns over global economic uncertainty.

While gold benefits from its safe-haven appeal, silver’s dual role as both a monetary and industrial asset has provided an additional layer of support. Analysts note that demand for silver in clean energy and electronics sectors remains strong, keeping its price resilient despite broader market fluctuations.

Market Outlook: Key Events to Watch

Looking ahead, traders will closely monitor upcoming U.S. economic data, including the Empire State Manufacturing Index, which may offer fresh insights into economic conditions. Additionally, speeches from Federal Open Market Committee (FOMC) members could trigger short-term volatility in the U.S. dollar, influencing gold and silver prices in the near term.

Short-Term Forecast

Gold is holding above $2,900, with resistance at $2,937.33. A break below $2,892 could trigger selling, while silver remains bullish above $32.13, targeting $32.76. Traders eye upcoming U.S. data.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is holding steady at $2,912.97, up 0.04% as buyers maintain control above the key pivot level of $2,892.56. The metal remains in an uptrend, supported by the 50-day EMA at $2,886.98, which is acting as dynamic support. Immediate resistance sits at $2,937.33, with further upside targets at $2,965.27 if momentum strengthens.

A break below $2,892 could trigger selling pressure, exposing support at $2,864.82 and potentially $2,835.10. However, as long as Gold holds above the trendline, buyers remain in the driver’s seat.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $32.39, up 0.06%, as buyers hold firm above the key pivot level of $32.13. The metal is maintaining a bullish stance, supported by the 50-day EMA at $32.13, while the 200-day EMA at $31.30 offers deeper structural support. Immediate resistance is seen at $32.76, and a break above this level could fuel gains toward $33.32.

On the downside, a drop below $32.13 would signal weakening momentum, exposing silver to support at $31.70 and potentially $31.25. As long as prices stay above the pivot, buyers are likely to remain in control, keeping silver’s upward trajectory intact.