Despite the bullish sentiment, the broader optimism in equity markets could limit gold’s upside potential in the near term. Technical indicators suggest slightly overbought conditions, which may prompt some profit-taking before the next major move.
Silver Prices Follow Gold’s Lead Amid Economic Uncertainty
Silver prices (XAG/USD) have also seen gains, trading at $30.80 after touching an intra-day high of $30.86. Like gold, silver has benefited from the weaker dollar and expectations of Fed rate cuts. Lower bond yields have enhanced silver’s appeal, positioning it as an attractive investment amid rising economic uncertainty.
Silver’s dual role as an industrial and safe-haven asset has driven demand, with ongoing concerns about the impact of US trade policies and inflation further supporting prices. Analysts suggest that silver’s upward trajectory could persist as traders await key economic data that may offer more insights into global growth trends.
The weakening dollar, largely influenced by Trump’s remarks on trade policies, has been a significant factor behind gold and silver’s rally. With markets anticipating potential rate cuts from the Federal Reserve, safe-haven demand for both metals remains strong.
As traders await flash PMI data for further economic cues, the outlook for gold and silver remains bullish in the short term. However, resistance levels at $2,785 for gold and $31.20 for silver could pose challenges for further gains.
Short-Term Forecast
Gold prices are poised for further gains as the weaker US dollar and falling bond yields boost demand. Key resistance at $2,785 could challenge the bullish trend.