Gold trades above $3,130 due to renewed safe-haven demand driven by expectations of Fed rate cuts and weakness in the yuan. Traders expect four Fed cuts in 2025, totaling over 100 basis points, which weakens the dollar and strengthens gold’s outlook. Meanwhile, the silver price forecast remains bullish as silver climbs past $31.20. This rise is fueled by inflation concerns and silver’s dual role as both a hedge and an industrial commodity.
Market Overview Gold extends its gains in early European trading, nearing $3,130 an ounce after a 1.5% rise the previous day. This upward movement continues despite improved market sentiment following President Donald Trump’s 90-day pause on global import tariffs. The S&P 500 has rebounded by nearly 10% this week, indicating a short-term risk-on sentiment. However, gold’s rally reflects broader concerns about the U.S. economic outlook.
Ricardo Evangelista, senior analyst at ActivTrades, notes, “This is not just a reaction to tariffs—markets are preparing for a prolonged economic slowdown.”
Analysts predict four rate cuts from the Federal Reserve this year, totaling more than 100 basis points. These cuts could weaken the dollar and increase gold’s appeal as a safe-haven asset.
Silver Gaining Momentum Amid Inflation and Economic Uncertainty Silver prices rise, with spot silver reaching $31.26 intraday. The metal benefits from rising inflation expectations and global economic uncertainty, drawing in investors who seek to diversify. Silver’s dual role as a precious and industrial metal increases 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 Drive Safe-Haven Sentiment Tensions remain despite the temporary tariff pause. The U.S. has imposed a 125% tariff on Chinese goods and a 10% base tariff on other key trade partners, reigniting fears of slowing global growth.
The yuan is trading at multi-year lows, strengthening gold’s position as a hedge against currency risks. Central banks continue to accumulate gold, and ETF inflows are expected to rise if prices remain above key levels.
Short-Term Forecast Gold maintains its strength above $3,100, supported by safe-haven inflows and expectations of dovish Fed policies. A break above $3,132 could pave the way for a move toward $3,167.
Gold Prices Forecast: Technical Analysis Gold consolidates after a strong two-day rebound, trading just above the $3,096 pivot level. Prices briefly tested resistance at $3,132 but struggled to push higher, showing signs of hesitation below $3,167. Immediate support lies at $3,096, followed by $3,047.
On the upside, a break above $3,132 could lead to $3,167 and $3,204. The 50 EMA at $3,057 offers dynamic support, while the 200 EMA at $2,997 provides broader trend support. RSI is near 68, approaching overbought levels. 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 edges higher, trading just above $31.16 after bouncing from $29.72 support earlier this week. The price is testing the 50% Fibonacci retracement level at $31.26, a key short-term resistance.
If buyers push through, the next resistance level sits at $31.96, followed by the 200 EMA at $32.36. On the downside, support rests at $30.56, with stronger support at $29.72.
The 50 EMA at $31.45 acts as resistance, limiting upward momentum. RSI gradually climbs but remains neutral, suggesting cautious optimism. A close above $31.26 would strengthen bullish sentiment, while rejection could signal a pullback. Silver is in recovery mode but needs to clear the $31.26–$31.45 range to confirm further upside.
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