Gold (XAUUSD) & Silver Price Forecast: Metals Range-Bound Ahead of Global PMI Data

Market Overview

During Wednesday’s Asian trading hours, gold (XAU/USD) stabilized around $3,320, bouncing back from earlier losses as investors maintained expectations for interest rate cuts by the U.S. Federal Reserve.

Market pricing now reflects three potential rate cuts in 2025, with the first possibly arriving as early as June, according to the CME FedWatch Tool.

These dovish bets have bolstered demand for gold, which benefits from lower yields due to its non-interest-bearing nature.

Silver Tracks Gold, Trading Near $32.77 on Weaker Dollar

Silver (XAG/USD) mirrored gold’s strength, hovering around $32.70 after hitting an intraday high of $32.86. A falling U.S. Dollar Index, now near a three-year low, has made dollar-denominated metals more appealing to global investors.

Despite a more positive global equity tone, silver continues to find support from both safe-haven flows and solid industrial demand.

Geopolitical Developments and Economic Data in Focus

While geopolitical sentiment has improved—following de-escalation signals in Eastern Europe and softer U.S. rhetoric on trade and Fed policy—investors remain cautious.

Markets reacted positively to President Trump’s apparent reversal on removing Fed Chair Powell and to constructive dialogue around U.S.-China tariffs. However, gold’s safe-haven appeal endures amid fiscal uncertainties and questions over the Fed’s independence.

Looking ahead, flash PMI releases across major economies are expected to shape sentiment. Any disappointing data could accelerate calls for easing and push gold and silver prices higher. Despite reduced immediate risk aversion, both metals remain strategically positioned as hedges against deeper economic and monetary instability.

Short-Term Forecast

Gold eyes $3,297 support amid cooling momentum, while silver hovers near $32.70. Watch for technical breaks at key EMAs to determine if bulls regain control or retreat deepens.

Gold Prices Forecast: Technical Analysis

Gold is cooling off from recent highs near $3,500 and now hovers around $3,320, eyeing key Fibonacci support. The metal is likely to test the 38.2% retracement level at $3,297—a critical area that aligns closely with the 50 EMA ($3,295). The next major support sits near $3,235 (50% Fib), while resistance lies at $3,374 and $3,427.

Upside momentum may resume if bulls reclaim $3,375, but failure here opens room toward $3,235 or deeper to $3,172 (61.8% Fib). A decisive break below the 50 EMA could tilt sentiment bearish.

All eyes now on whether this is a healthy pullback or the beginning of a broader correction. Watch price reaction at the $3,297 zone.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is consolidating near $32.70, caught in a sideways grind just above rising trendline support. Price continues to hover between immediate support at $32.34 and resistance at $33.12. The 50 EMA ($32.36) and 200 EMA ($32.36) have aligned closely, forming a potential inflection point—any cross here could steer short-term direction.

Despite the recent pullback from the $33.12 ceiling, the broader trend remains constructive, supported by a series of higher lows since early April. If bulls hold the trendline and reclaim $33.12, the path toward $33.74 opens up.

A drop below $32.34, however, could signal a deeper retracement toward $31.74. Watch for volume cues near the EMAs to gauge momentum shifts.