Gold (XAU) Silver (XAG) Daily Forecast: Symmetrical Triangle Hints at Breakout Opportunities

Market Overview

Gold (XAU/USD) edged lower on Friday, trading near $2,633 after touching an intraday low of $2,629. Thin holiday trading conditions have kept market activity subdued, curbing the precious metal’s momentum. However, gold’s safe-haven appeal remains intact as geopolitical tensions and economic uncertainties provide underlying support.

Moderate US PCE inflation data has dampened expectations for aggressive Federal Reserve rate cuts in 2025, limiting immediate upside for gold.

Yet, potential monetary easing next year and escalating global risks, including the ongoing Russia-Ukraine conflict and Middle East unrest, could buoy prices in the longer term.

Silver Gains Slightly but Faces Dollar-Driven Resistance

Silver (XAG/USD) held steady at $29.83, after reaching an intraday high of $29.89. Geopolitical tensions and silver’s dual role as an industrial and safe-haven asset have underpinned its recent gains.

Despite these tailwinds, silver faces resistance from a strong US Dollar, which rose above 108.00 on the Dollar Index (DXY), nearing its highest level since November 2022. A stronger dollar makes dollar-denominated commodities like silver and gold more expensive for international buyers, potentially capping further price growth.

Silver’s long-term prospects remain promising due to its critical role in clean energy technologies and electronics, coupled with low US Treasury yields supporting broader commodity demand.

Short-Term Forecast

Gold (XAU/USD) consolidates near $2,633, supported by geopolitical risks and potential easing in 2025. Silver at $29.83 eyes resistance at $30.16, facing dollar-driven headwinds.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,633.03, down 0.03% as it consolidates near its pivot point of $2,631.59. The 4-hour chart shows gold holding above the 50-day EMA at $2,624.82, signaling near-term support, while the 200-day EMA at $2,639.07 suggests a broader consolidation phase.

Immediate resistance lies at $2,651.62, with further upside potential toward $2,676.43 if bullish momentum persists. On the downside, support is observed at $2,608.24, with a break below this level exposing $2,584.66.

Gold’s technical outlook remains cautiously optimistic as long as prices stay above $2,630. However, a breach below this pivot could shift momentum, triggering bearish moves. Traders should monitor the $2,651 resistance for signs of further gains and $2,608 support for potential pullbacks.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $29.83, reflecting a slight uptick of 0.05% as it consolidates around the $29.79 pivot point. The 4-hour chart reveals a symmetrical triangle pattern, indicating potential for a breakout. Immediate resistance is seen at $30.16, with further gains targeting $30.58.

On the downside, support levels at $29.41 and $28.82 could come into play if bearish momentum builds.

The 50-day EMA at $29.71 supports a cautiously bullish outlook, while the 200-day EMA at $30.29 suggests overhead resistance may limit upside potential. A decisive move above $29.79 could trigger renewed buying interest, but failure to hold this level may signal increased selling pressure.