Gold (XAU) Silver (XAG) Daily Forecast: Will Inflation Fears Drive Safe-Haven Demand?

Market Overview

Gold prices (XAU/USD) edged higher around the $2,930 level, supported by growing uncertainty surrounding U.S. trade policies and economic weakness. Investors are flocking to gold as a safe-haven asset amid concerns about U.S. President Donald Trump’s tariff plans, which could drive inflation and compel the Federal Reserve to maintain high interest rates.

Analysts suggest that inflationary pressures might limit the Fed’s flexibility in adjusting monetary policy, further supporting gold prices.

Adding to market unease, U.S. consumer confidence dropped sharply to 98.3 from 105.3 in February, marking the steepest decline since August 2021, according to the Conference Board. This decline reflects growing caution among American consumers, which could weaken economic growth and increase demand for safe-haven assets like gold.

Traders are also awaiting the U.S. Personal Consumption Expenditures (PCE) Price Index for January, the Fed’s preferred inflation measure, which is set for release on Friday. This report could significantly influence gold prices by shaping market expectations for future Fed rate decisions.

Silver Faces Pressure Amid Fed Policy and Trade Uncertainty

Silver (XAG/USD) is trading around $31.62, struggling to gain upward momentum as traders weigh economic uncertainty against rising U.S. Treasury yields. The metal hit an intra-day low of $31.62, reflecting cautious sentiment amid concerns over U.S. trade policies and the Federal Reserve’s interest rate outlook.

While weaker consumer confidence has supported safe-haven demand, increasing Treasury yields are limiting silver’s upside potential.

Investors are closely monitoring upcoming economic data, particularly the U.S. PCE Price Index, which could impact silver prices. Additionally, comments from Fed officials, including Raphael Bostic and Thomas Barkin, are expected to provide further insights into the central bank’s future rate decisions.

Outlook: Volatility Expected Amid Key Economic Data Releases

Both gold and silver are likely to experience heightened volatility in the coming days, driven by upcoming economic reports and ongoing trade uncertainties. Key events to watch include the U.S. New Home Sales report and the speeches from Fed officials, which could influence market sentiment and price direction.

Short-Term Forecast

Gold remains bearish below $2,922.70, with key support at $2,888.61. Silver faces pressure below $31.83. Volatility expected amid U.S. economic data.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,907.55, down 0.01%, reflecting a cautious market sentiment. It’s hovering below the pivot point at $2,922.70, which now acts as a critical resistance level. This level is further reinforced by the 50 EMA at $2,922.03, signaling short-term bearish pressure.

If the price remains below this pivot, the next target is immediate support at $2,888.61, with a more substantial floor at $2,864.54.

On the upside, breaking above $2,922.70 would shift sentiment to bullish, potentially pushing prices towards $2,956.68. However, the path of least resistance currently leans bearish.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $31.62, down 0.6%, signaling bearish sentiment as it sits below the pivot point at $31.83. It’s also trading under both the 50 EMA at $33.31 and the 200 EMA at $31.66, reinforcing short-term downward pressure.

If the price stays below $31.83, the next target is immediate support at $31.28, with a deeper drop towards $30.69 if selling momentum continues.

On the upside, a break above $31.83 would shift sentiment to bullish, potentially driving prices towards $32.32. However, with the 50 EMA acting as a strong resistance, the short-term outlook remains bearish.