Gold (XAU) Silver (XAG) Daily Forecast: Trade Disputes and Inflation Data Shape Market Outlook

Market Overview

Gold (XAU/USD) is trading around $2,947, maintaining its strength as expectations of Federal Reserve rate cuts and escalating trade disputes drive demand. Silver (XAG/USD) is hovering near $33.01, facing minor losses, but remains supported by the prospect of looser monetary policy and a declining U.S. dollar.

Recent U.S. inflation data reinforced market expectations for a dovish Federal Reserve stance. The Consumer Price Index (CPI) slowed to 2.8% year-over-year in February, down from 3% in January.

Core inflation also eased to 3.1%, further fueling speculation that the Fed could cut rates by 25 basis points in June, July, and October. With inflation cooling, gold remains an attractive alternative to interest-bearing assets.

Trade Disputes Increase Market Uncertainty

Beyond monetary policy, ongoing trade tensions have added another layer of uncertainty. The U.S. imposed a 25% tariff on steel and aluminum imports, prompting retaliatory measures from the European Union and Canada.

• The EU plans to impose tariffs on $28 billion worth of U.S. goods next month.
• Canada has placed 25% tariffs on over $20 billion worth of American products.

These escalating trade restrictions have increased concerns about slower global economic growth. As a result, investors have turned to gold as a hedge against potential economic disruptions.

Markets Await U.S. Producer Price Index for Direction

Despite the bullish trend in gold, traders remain cautious ahead of the U.S. Producer Price Index (PPI) report, which could influence Federal Reserve policy and impact the U.S. dollar and gold prices.

For now, gold’s upward trajectory remains intact, supported by the weakening dollar, expectations of lower interest rates, and ongoing trade uncertainties.

Traders are watching the $2,955 resistance level, as a breakout could push prices higher, while a dip below $2,930 could signal a shift in momentum.

Short-Term Forecast

Gold remains bullish above $2,930, with resistance at $2,955. A breakout targets $2,972, while failure could see support at $2,906. Traders eye U.S. PPI for market direction.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,939.68, slightly down 0.01%, as it tests a crucial resistance zone. The price remains above the pivot point at $2,930.76, signaling bullish potential if buyers maintain control. Immediate resistance at $2,954.75 is the next key hurdle, with a breakout paving the way for $2,971.78.

Technical indicators support the bullish case, with gold trading above the 50-day EMA at $2,917.81 and the 200-day EMA at $2,903.19. A triple-top formation suggests a potential push higher, but failure to sustain momentum could bring $2,906.06 and $2,880.20 into play as support levels.

Traders should watch volume and momentum closely—staying above $2,930 keeps the bullish outlook intact.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is hovering at $32.71, down 0.01%, as it tests a key pivot level. Holding above this mark keeps the bullish outlook intact, with immediate resistance at $33.32 and a breakout potentially extending gains toward $33.75.

Technical indicators support upward momentum, with silver trading above the 50-day EMA at $32.72 and the 200-day EMA at $32.27. However, a drop below $32.71 could shift sentiment bearish, exposing support at $32.34 and $31.90.

Traders should watch for volume confirmation—if buyers step in at current levels, silver could attempt a breakout. But if $32.71 fails to hold, expect increased selling pressure in the near term.