Gold (XAU) Silver (XAG) Daily Forecast: Will Gold Break $3,000 as Fed Rate Cut Bets Rise?

Market Overview

Gold (XAU/USD) briefly reached $2,993 before settling as traders assessed economic data and monetary policy outlooks. While a stronger U.S. dollar slowed gains, expectations of Federal Reserve rate cuts have kept gold’s trajectory positive.

Investors anticipate three 25 basis point cuts in June, July, and October as inflation moderates. February’s Consumer Price Index (CPI) increased by 2.8% year-over-year, down from 3% in January, while Core CPI eased to 3.1%.

The Producer Price Index (PPI) held steady, with its annual rate declining to 3.2% from 3.7%, reinforcing expectations of looser monetary policy.

Silver Holds Steady Amid Market Volatility

Silver (XAG/USD) is trading at $33.91 after dipping to $33.67 earlier in the session. While the metal remains well-supported by economic uncertainty and potential Fed policy shifts, a stronger U.S. dollar has limited upward movement.

Investors continue to use silver as a hedge against inflation, but the lack of a clear policy signal has kept prices in a tight range.

Market Focus Shifts to Key Resistance and Fed Meeting

Gold remains capped below $3,000 as the U.S. dollar extends its recovery, slowing upward momentum. Reports of a potential 30-day ceasefire between Russia and Ukraine and efforts to prevent a U.S. government shutdown have eased market uncertainty, reducing demand for safe-haven assets.

Traders are watching the Michigan Consumer Sentiment Index and upcoming Federal Open Market Committee (FOMC) meeting for clues on policy direction. Any dovish shift from the Fed could push gold above $3,000, reinforcing the long-term bullish outlook.

Short-Term Forecast

Gold remains bullish above $2,970, with resistance at $2,993. A breakout targets $3,013, while failure could see support at $2,956. Traders eye FOMC signals for direction.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,982.74, inching up 0.03%, as it hovers above the key pivot level of $2,970.61. Bulls are eyeing immediate resistance at $2,993.91, with a breakout potentially pushing prices toward $3,013.94.

However, failure to sustain momentum could trigger a pullback to support at $2,956.33, with further downside risk extending to $2,933.04.

Technical indicators reinforce gold’s resilience, with the 50-day EMA at $2,927 providing dynamic support, while the 200-day EMA at $2,875.70 signals a strong long-term trend. A daily close above $2,993.91 would confirm bullish momentum, while a dip below $2,970 may shift sentiment toward consolidation.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is holding firm at $33.91, up 0.09%, as buyers defend key support levels. The metal remains bullish above the pivot point at $33.67, with the next resistance at $34.16. A breakout above this level could fuel momentum toward $34.54, reinforcing the short-term uptrend.

The 50-day EMA at $32.75 is providing dynamic support, while the 200-day EMA at $32.05 indicates a solid long-term base. However, failure to sustain gains above $33.67 could trigger a pullback, exposing immediate support at $33.32, with further downside risks toward $32.96.

For now, silver’s strength hinges on whether it can clear $34.16 with strong volume, signaling a continuation of the rally or a potential reversal.