Gold (XAU) Silver (XAG) Daily Forecast: U.S. Inflation Data Looms, Pivot Levels Hold Strong

Market Overview

Gold prices (XAU/USD) climbed to $2,675 intraday before stabilizing around $2,669. The modest rally followed reports of U.S. President-elect Donald Trump’s economic team proposing a gradual tariff increase to temper inflation risks. This news triggered a slight decline in U.S. Treasury bond yields, bolstering demand for gold, a non-yielding asset.

Despite the gains, gold’s momentum remains capped as the Federal Reserve’s hawkish interest rate stance curbs upward pressure.

Friday’s strong U.S. Nonfarm Payrolls (NFP) report reinforced expectations of reduced rate cuts, lending support to the U.S. Dollar (USD) and keeping bond yields steady. As a result, gold faces a constrained upside, though its safe-haven appeal persists amid fluctuating economic signals.

Silver Tracks Gold’s Gains Amid Yield Decline

Silver (XAG/USD) mirrored gold’s upward trend, reaching an intraday high of $29.76 before stabilizing near $29.67. The metal benefited from the slight dip in U.S. Treasury yields, making non-yielding assets like silver more attractive.

However, like gold, silver’s trajectory is shaped by the Federal Reserve’s cautious approach to monetary easing and stable U.S. bond yields.

Outlook: Economic Data and Geopolitical Factors in Focus

Traders are now awaiting the U.S. Producer Price Index (PPI) report for further market direction. A stronger-than-expected PPI could reinforce the Fed’s hawkish stance, potentially pressuring gold and silver prices.

Meanwhile, geopolitical developments, including U.S.-Russia relations and progress on Middle East ceasefire efforts, are boosting investor confidence and adding nuance to safe-haven demand.

Short-Term Forecast

Gold (XAU/USD) holds above $2,658.87 with bullish momentum targeting $2,696.66. Silver (XAG/USD) steadies at $29.67; resistance at $30.06 limits further gains.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,669.05, up 0.22% as bullish momentum holds above the pivot point at $2,658.87. Immediate resistance stands at $2,696.66, with a more significant barrier at $2,720.76. On the downside, immediate support is positioned at $2,638.38, followed by $2,615.57.

The 50-day EMA at $2,659.28 reinforces short-term bullish sentiment, while the 200-day EMA at $2,648.44 confirms a strong long-term uptrend. A sustained break above $2,696.66 could signal further upside potential, while a drop below $2,658.87 might trigger a deeper correction.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $29.67, up 0.20%, as prices hold above the key pivot point at $29.59. Immediate resistance is at $30.06, with further upside likely if prices breach this level. A higher target could emerge near $30.68. On the downside, support is seen at $29.34, with a deeper floor at $28.79.

The 50-day EMA at $29.92 hints at short-term selling pressure, while the 200-day EMA at $30.25 underscores the broader bearish trend. A break below $29.59 may signal additional downside risks, while sustained trading above this pivot level keeps the bullish bias intact.