Gold (XAU) Silver (XAG) Daily Forecast: Will Safe-Haven Demand Return as Markets Digest Fed Outlook?

Market Overview

Gold prices (XAU/USD) are facing downward pressure, trading around the 2,752 mark after touching an intra-day low of 2,749. The recent decline is largely driven by a stronger US dollar, supported by a rebound in US Treasury bond yields. Investors seeking higher returns are moving away from safe-haven assets like gold, diminishing its appeal.

Equity markets have also displayed optimism, reducing gold’s attractiveness. However, expectations of two Federal Reserve rate cuts this year could provide some support by weakening the dollar and lowering bond yields. “Gold remains vulnerable to short-term fluctuations, but long-term fundamentals could turn favorable if inflation eases,” said a market analyst.

Silver Faces Headwinds from Strengthening Dollar

Silver (XAG/USD) is trading near 30.63, having hit an intra-day low of 30.57, as the strengthening dollar and recovering Treasury yields weigh on the metal. Silver’s dual role as an industrial and safe-haven asset makes it sensitive to market sentiment, which has recently shifted towards riskier investments.

Despite easing geopolitical tensions and speculation surrounding US President Donald Trump’s tariff policies, silver remains exposed to fluctuations in investor appetite. Upcoming economic data releases and central bank decisions will likely shape the next move for silver prices.

US Policy Uncertainty Keeps Precious Metals Volatile

The US dollar has remained steady, driven by higher yields and market uncertainty over Trump’s trade policies. Investors are closely watching his remarks at the World Economic Forum, which could provide insight into future tariff decisions.

Trump’s policies, seen as potentially inflationary, could keep the Fed cautious about rate cuts. However, markets still anticipate at least two reductions this year, which could support gold and silver prices in the medium term.

Key events ahead, including US weekly jobless claims and the Bank of Japan’s policy decision, could introduce further volatility in the precious metals market.

Short-Term Forecast

Gold (XAU/USD) remains under bearish pressure, trading below key resistance at 2,763.70. A break below 2,746.21 could accelerate declines, while rate cut expectations offer potential support.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is currently trading at $2,752.26, down 0.15%, as the metal struggles to hold above key technical levels. The price remains below the pivotal $2,763.70 mark, indicating bearish pressure in the short term. Immediate resistance is seen at $2,774.09, with a stronger hurdle at $2,785.52.

On the downside, support is observed at $2,746.21, with the next critical level at $2,735.12, aligning closely with the 38.2% Fibonacci retracement.

The 50-day EMA at $2,712.39 and the 200-day EMA at $2,671.45 provide underlying support, but a sustained move below $2,763.70 could trigger a deeper correction.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $30.63, down 0.60%, as it hovers just above the pivot point of $30.58. This level is key—holding above it could keep bullish sentiment intact, while a break below may open the door for further losses.

Immediate resistance is seen at $30.95, with a stronger hurdle at $31.23, which could limit any upside attempts.

On the downside, support rests at $30.33, followed by a more significant floor at $29.99. The 50-day EMA at $30.45 provides short-term support, while the 200-day EMA at $30.34 reinforces the broader bullish trend.