Gold (XAU) Silver (XAG) Daily Forecast: Trade Tensions and Rate Cut Speculation Fuel Demand

Market Overview

Gold prices (XAU/USD) continued their upward trajectory on Wednesday, trading around the $2,752 level after touching an intra-day high of $2,758 during the Asian session.

Investors have increasingly turned to gold amid mounting trade tensions sparked by U.S. President Donald Trump’s announcement of potential 25% tariffs on Canadian and Mexican imports.

The safe-haven asset remains in demand as market participants brace for potential disruptions in global trade.

Fed Rate Cut Expectations Support Gold’s Momentum

Market speculation that the Federal Reserve could cut interest rates twice this year has further fueled gold’s bullish momentum. Analysts suggest that easing inflationary pressures in the U.S. have raised the likelihood of monetary policy adjustments, making gold an attractive hedge against potential economic uncertainty.

“Gold remains well-positioned as investors anticipate rate cuts to support economic growth,” said a senior market strategist at a leading investment firm.

Despite a modest recovery in U.S. Treasury yields, which helped the U.S. Dollar (USD) rebound from a two-week low, gold’s upward trajectory has remained largely intact. The 10-year U.S. Treasury yield edged higher to 4.12%, providing some headwinds to further gold gains.

Silver Faces Pressure Amid Stronger Dollar

In contrast, silver (XAG/USD) struggled to maintain its footing, trading around $30.91 after hitting an intra-day low of $30.73. The modest recovery in the U.S. dollar, coupled with shifting expectations around the Fed’s rate decisions, has exerted downward pressure on silver prices.

Analysts point to silver’s industrial demand exposure, which makes it more susceptible to economic slowdowns compared to gold.

Market Outlook and Upcoming Events

Traders are now eyeing key upcoming events, including the Bank of Japan’s monetary policy decision on Friday and the release of flash PMI reports, which could provide further insights into global economic conditions.

These developments will likely influence both gold and silver price movements in the near term.

Short-Term Forecast

Gold remains bullish above the $2,743.96 pivot, eyeing resistance at $2,759.13. Silver holds above $30.73, with further upside potential if key resistance at $31.11 is breached.

Gold Prices Forecast: Technical Analysis

Gold is trading at $2,752.00, up 0.26%, showing resilience above key technical levels. The pivot point at $2,743.96 serves as a crucial support, with a sustained hold above this level favoring a bullish outlook. Immediate resistance is at $2,759.13, followed by stronger hurdles at $2,766.37.

On the downside, key support levels to watch are $2,734.19 and $2,724.42. The 50-day EMA at $2,700.43 and the 200-day EMA at $2,666.17 indicate underlying strength in the broader trend.

Notably, the emergence of a three white soldiers candlestick pattern signals potential bullish continuation, with a move above $2,759.13 likely to attract further buying interest. However, a drop below $2,743.96 could shift momentum towards the downside.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading at $30.91, up 0.25%, showing signs of bullish momentum as it hovers above the key pivot point at $30.73. The metal has recently broken above a double top pattern and closed with a bullish engulfing candlestick, both signaling strong buying interest.

Immediate resistance is seen at $31.11, with further hurdles at $31.44. On the downside, support levels to watch are $30.45 and $30.15. The 50-day EMA at $30.37 and the 200-day EMA at $30.31 suggest a solid underlying trend.

A sustained move above $30.73 could push silver higher, while a break below might trigger selling pressure, challenging recent gains.