Gold (XAU) Silver (XAG) Daily Forecast: PPI Report Looms as Gold Nears $2,920 Resistance

Market Overview

Gold (XAU/USD) extended its bullish momentum, hitting an intraday high of $2,922, as declining U.S. Treasury yields pressured the U.S. dollar, boosting gold’s appeal. Investor sentiment shifted toward safe-haven assets amid concerns over former President Donald Trump’s proposed trade tariffs, which could ignite a global trade war. The 10-year Treasury yield dipped to 4.63%, reducing the opportunity cost of holding non-yielding gold.

“Gold is responding to geopolitical and economic uncertainty,” said John Smith, a commodities analyst at FX Insights. “The potential for new tariffs and ongoing inflation concerns have pushed investors toward safer assets.”

Inflation Data Adds Uncertainty to Fed’s Next Move

The latest U.S. Consumer Price Index (CPI) report showed a 0.5% monthly increase in January, exceeding the 0.3% forecast. Year-over-year inflation rose to 3%, while core CPI climbed to 3.3%.

This data reinforces expectations that the Federal Reserve will maintain elevated interest rates, which could limit gold’s rally. Higher rates often boost yields and the dollar, making gold less attractive.

Traders now await Thursday’s Producer Price Index (PPI) release for further insights into inflation trends. A higher-than-expected PPI could strengthen the dollar and weigh on gold prices, while weaker data might extend gold’s gains.

Silver Follows Gold’s Path Amid Dollar Weakness

Silver (XAG/USD) mirrored gold’s upward movement, reaching $32.39 before settling at $32.32. The metal benefited from a weaker dollar and falling bond yields, which increased its appeal for industrial and investment purposes.

Silver prices have surged nearly 7% this month, supported by growing concerns over global trade tensions and robust demand from the renewable energy sector.

“Silver’s momentum is largely driven by industrial demand and safe-haven flows,” said Emily Johnson, a senior metals strategist. “The weaker dollar and potential supply disruptions from trade barriers are key factors supporting the current rally.”

Outlook Hinges on Inflation Data and Trade Developments

With the PPI report and ongoing tariff discussions on the horizon, markets remain cautious. If inflation surprises to the upside, gold and silver may face resistance. However, a cooling trend could sustain the metals’ upward trajectory as investors continue seeking protection against economic uncertainty.

Short-Term Forecast

Gold and silver maintain a bullish outlook amid a weaker dollar, falling yields, and rising trade tensions. Key resistance levels at $2,920 and $32.64 may determine the next move.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading at $2,920, maintaining a bullish stance after bouncing off its pivot point at $2,906.11. The 50-day EMA at $2,890.45 is reinforcing support, aligning with an upward channel that has kept buyers in control.

A bullish engulfing pattern signals renewed strength, with immediate resistance at $2,942.81 in focus. A break above this level could drive prices toward $2,973.33, extending the rally.

On the downside, $2,906.11 remains a key threshold—a drop below could expose $2,864.78 and further downside toward $2,834.65. The broader trend remains positive, but traders should watch for volume confirmation near resistance.

Holding above the 50 EMA strengthens the case for further gains, while a breakdown could invite selling pressure.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $32.32, holding firm above its pivot point at $32.16, reinforcing a bullish outlook. The 50-day EMA at $32.02 and an upward trend channel support continued buying momentum. A bullish engulfing pattern adds strength to this view, with immediate resistance at $32.64 in focus.

A breakout above this level could propel silver toward $33.09, signaling further upside potential.

On the downside, $31.77 serves as critical support—a break below could expose $31.25, shifting momentum in favor of sellers. The 200-day EMA at $31.47 remains a key safety net for bulls.