Despite these headwinds, expectations of a Federal Reserve (Fed) rate cut remain intact. Markets anticipate two rate reductions by the end of 2025, with Trump advocating for immediate cuts. If the Fed signals an easing cycle, this could cap bond yields, weakening the dollar and providing support to gold prices.
Silver Faces Pressure, Struggles to Maintain Momentum
Silver (XAG/USD) is trading around $30.06, struggling to sustain momentum amid the resilient US dollar. While silver often mirrors gold’s movements, it remains more vulnerable to shifts in industrial demand.
The uncertainty surrounding tariff hikes on metals—including aluminum and copper—has heightened volatility in commodity markets, further weighing on silver prices.
Additionally, China’s weak economic data, particularly a contraction in manufacturing PMI, has raised concerns over industrial metal demand. If global growth slows, silver could face additional downside pressure.
Short-Term Forecast
Gold (XAU/USD) remains under pressure near $2,740, struggling below key resistance at $2,744.57. While Silver (XAG/USD) is hovering around $30.06, facing resistance at $30.24. A break above this level could push prices toward $30.61, while sustained selling may drive it lower to $29.86.
Gold Prices Forecast: Technical Analysis
Gold (XAU/USD) is trading at $2,740.98, down 0.02%, reflecting cautious sentiment as it struggles below key levels. The price recently broke out of an upward channel, now signaling bearish momentum. Immediate support lies at $2,716.49, with further downside risks toward $2,696.69.
On the upside, the pivot point at $2,744.57 serves as a critical resistance; a decisive break above this could drive bullish sentiment toward $2,762.49 and $2,786.30.
Technically, the 50-day EMA at $2,749.37 and the 200-day EMA at $2,709.18 form crucial levels, with the latter providing solid medium-term support. Traders should watch for a sustained close below the pivot to confirm further bearish action, while a rebound above $2,744.57 may stabilize the outlook.