Gold (XAU) Silver (XAG) Daily Forecast: Strong Rally Continues – Can Prices Break $2,800 and $31.20 Resistance?

Market Overview

Gold prices (XAU/USD) continued their upward momentum on Friday, trading around $2,773.72 after reaching an intra-day high of $2,777 during the Asian session. The primary driver behind the rally is the weakening US dollar, which hit a fresh monthly low following comments from US President Donald Trump. He indicated a preference for avoiding tariffs on China, easing investor concerns over a potential escalation in trade tensions.

Additionally, lower US Treasury bond yields have supported gold’s appeal as a safe-haven asset. Investors are increasingly positioning for potential Federal Reserve interest rate cuts, which could further weaken the dollar and make gold an attractive alternative. “With growing expectations of Fed easing, gold remains a solid hedge against economic uncertainty,” said a market analyst.

Despite the bullish sentiment, the broader optimism in equity markets could limit gold’s upside potential in the near term. Technical indicators suggest slightly overbought conditions, which may prompt some profit-taking before the next major move.

Silver Prices Follow Gold’s Lead Amid Economic Uncertainty

Silver prices (XAG/USD) have also seen gains, trading at $30.80 after touching an intra-day high of $30.86. Like gold, silver has benefited from the weaker dollar and expectations of Fed rate cuts. Lower bond yields have enhanced silver’s appeal, positioning it as an attractive investment amid rising economic uncertainty.

Silver’s dual role as an industrial and safe-haven asset has driven demand, with ongoing concerns about the impact of US trade policies and inflation further supporting prices. Analysts suggest that silver’s upward trajectory could persist as traders await key economic data that may offer more insights into global growth trends.

Fed Policy and Economic Uncertainty Drive Precious Metals

The weakening dollar, largely influenced by Trump’s remarks on trade policies, has been a significant factor behind gold and silver’s rally. With markets anticipating potential rate cuts from the Federal Reserve, safe-haven demand for both metals remains strong.

As traders await flash PMI data for further economic cues, the outlook for gold and silver remains bullish in the short term. However, resistance levels at $2,785 for gold and $31.20 for silver could pose challenges for further gains.

Short-Term Forecast

Gold prices are poised for further gains as the weaker US dollar and falling bond yields boost demand. Key resistance at $2,785 could challenge the bullish trend.

Gold Prices Forecast: Technical Analysis

Gold prices (XAU/USD) are currently trading at $2,773.72, reflecting a 0.69% increase, as the metal gains traction amid a softer US dollar and falling Treasury yields. The price is hovering just above the key pivot point of $2,772.67, which serves as a crucial support level.

A sustained move above this level reinforces the bullish sentiment, with immediate resistance seen at $2,785.51 and the next key hurdle at $2,800.63.

Technical indicators suggest an upward bias, with the 50-day EMA at $2,721.81 providing strong support, while the 200-day EMA at $2,676.37 underpins the broader uptrend. However, a break below $2,772.67 could invite selling pressure, potentially driving the price toward $2,746.21 and beyond.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $30.80, up 1.20%, maintaining a bullish tone as it hovers above the key pivot level of $30.58. The metal is gaining momentum, with immediate resistance at $30.95 and the next hurdle at $31.23. A sustained move above these levels could pave the way for further upside, driven by a weaker US dollar and ongoing safe-haven demand.

The 50-day EMA at $30.47 offers near-term support, while the 200-day EMA at $30.35 reinforces the longer-term bullish trend. However, a drop below $30.58 could trigger selling pressure, potentially driving prices lower toward the $30.33 support level.