Gold (XAUUSD) & Silver Price Forecast: ETF Flows and Yuan Weakness Reinforce Bullish Trend

Market Overview

Gold extended its gains during Thursday’s early European session, trading near $3,130 an ounce after climbing 1.5% the prior day. The move higher came despite improved market sentiment following President Donald Trump’s 90-day pause on global import tariffs.

The S&P 500’s nearly 10% rebound this week reflects a short-term risk-on tilt. Yet, gold’s parallel rally underscores broader concerns about the U.S. economic outlook.

“This is not just a reaction to tariffs—markets are preparing for a prolonged economic slowdown,” said Ricardo Evangelista, senior analyst at ActivTrades.

Analysts now expect four rate cuts from the Federal Reserve this year, totaling over 100 basis points, which could weigh on the dollar and boost gold’s appeal.

Silver Gains Traction as Inflation and Growth Concerns Linger

Silver prices also advanced, with spot silver reaching $31.26 intraday. The metal continues to benefit from rising inflation expectations and global economic uncertainty, attracting investors looking to diversify.

Silver’s dual role as a precious and industrial metal enhances its appeal during periods of market volatility.

“Silver’s momentum mirrors that of gold, but with an added speculative edge,” said Jeffrey Roach, Chief Economist at LPL Financial.

Trade and Currency Risks Reinforce Safe-Haven Sentiment

Despite the temporary pause, tensions remain. A 125% U.S. tariff on Chinese goods and a 10% base tariff on other key trade partners have renewed fears of slowing global growth.

With the yuan trading at multi-year lows, gold’s role as a hedge against currency risk is strengthened. Central banks continue to accumulate gold, and ETF inflows are expected to increase if prices hold above key thresholds.

Short-Term Forecast

Gold remains strong above $3,100, supported by safe-haven flows and dovish Fed expectations. A break above $3,132 could open the door to $3,167.

Gold Prices Forecast: Technical Analysis

Gold is consolidating after a strong two-day rebound, trading just above the $3,096 pivot zone. Price briefly tested resistance at $3,132 but struggled to push higher, showing signs of hesitation just below the $3,167 barrier. Immediate support sits at $3,096, followed by $3,047.

On the upside, a breakout above $3,132 could clear the path to $3,167 and $3,204. The 50 EMA at $3,057 offers dynamic support, while the 200 EMA at $2,997 underpins the broader trend.

RSI is hovering near 68, approaching overbought territory. Momentum favors bulls above $3,096, but a decisive close above $3,132 is needed to maintain the rally.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is edging higher, now trading just above the $31.16 mark after bouncing from the $29.72 support earlier this week. The price is testing the 50% Fibonacci retracement level at $31.26, a key short-term hurdle for bulls.

If buyers push through, the next major resistance sits at $31.96, followed by the 200 EMA at $32.36. On the downside, immediate support lies at $30.56, with stronger footing at $29.72.

The 50 EMA at $31.45 is acting as resistance for now, capping upward momentum. RSI is gradually climbing but remains neutral, suggesting cautious optimism.

A close above $31.26 would strengthen bullish sentiment, while rejection could signal another pullback. Silver is in recovery mode but must clear $31.26–$31.45 to confirm upside continuation. Below that, price may remain trapped in consolidation.