Gold (XAU) Silver (XAG) Daily Forecast: Tariff Tensions Push Gold Near $2,935 as Silver Eyes $33.50

Market Overview

Gold prices (XAU/USD) extended their bullish streak on Tuesday, reaching an intraday high of $2,933 as investors flocked to safe-haven assets amid escalating tariff concerns. The metal gained traction after former U.S. President Donald Trump announced potential reciprocal tariffs, raising fears of a global trade dispute.

“The uncertainty around these tariffs is driving investors toward gold,” said Sarah Thompson, a commodities strategist at Global Finance Insights. “With inflation still sticky, gold remains a reliable hedge.”

The U.S. Producer Price Index (PPI) for January rose 3.5% year-over-year, exceeding forecasts and reinforcing inflationary pressures. Meanwhile, the U.S. dollar weakened for the fourth consecutive session, making gold more attractive to foreign buyers.

However, the Federal Reserve’s cautious stance on rate cuts may limit further gains. Fed Chair Jerome Powell reiterated that rate adjustments would only come with clearer evidence of cooling inflation.

Silver Surges as Demand for Safe-Haven Assets Grows

Silver (XAG/USD) climbed to $32.93, supported by a softer dollar and falling Treasury yields. The metal has surged nearly 5% this month, driven by heightened demand for safe-haven assets and robust industrial consumption. The renewable energy sector continues to boost silver demand, particularly for solar panel production.

“Silver is not just following gold,” noted James Anderson, senior metals analyst at MarketView. “It’s benefiting from a structural increase in industrial use alongside its safe-haven appeal.”

Despite the bullish momentum, silver prices may face resistance if the Federal Reserve maintains its hawkish stance. Higher interest rates typically dampen the appeal of non-yielding assets like silver.

Economic Data and Trade Policies Keep Markets on Edge

Investors are closely monitoring the upcoming U.S. Retail Sales report, which could influence the dollar’s trajectory. A stronger-than-expected reading might bolster the greenback, pressuring gold and silver prices. Meanwhile, initial jobless claims dropped to 213,000, signaling a resilient labor market that supports the Fed’s cautious approach.

The proposed tariffs, set for review before April 1, remain a key market catalyst. Analysts suggest that prolonged uncertainty could sustain the demand for gold and silver, especially if inflation indicators remain elevated.

“Gold’s next resistance lies at $2,950,” Thompson added. “Breaking that could open the door to $3,000, while silver may target $33.50 if the bullish sentiment continues.”

Short-Term Forecast

Gold prices remain bullish above $2,923, supported by tariff concerns and inflation data. Resistance at $2,950; watch for volatility with upcoming U.S. Retail Sales data.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is currently trading at $2,931.60, up 0.02%, as it hovers above the critical pivot point of $2,923.15. The price remains supported by the 50-EMA at $2,902.89, indicating ongoing bullish sentiment.

Immediate resistance is seen at $2,942.81, with the next target at $2,957.10 if momentum continues.

On the downside, key support rests at $2,907.83, with further cushioning at $2,892.61. The 200-EMA at $2,834.02 highlights the long-term strength of gold’s upward trajectory. A sustained position above $2,923 could invite more buying, while a break below this level may trigger sharp selling.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $32.86, down 0.06%, but still holding above the key pivot point at $32.65. The 50-EMA at $32.16 provides short-term support, while the 200-EMA at $31.58 signals a solid long-term uptrend. Immediate resistance sits at $33.09, with the next target at $33.40 if bullish momentum returns.

On the downside, support at $32.36 remains critical; a break below could accelerate selling toward $31.98. The metal’s resilience reflects investor caution amid shifting market conditions. As long as silver stays above $32.65, the bullish outlook persists, but a dip below this level could invite further declines.