Gold (XAU) Silver (XAG) Daily Forecast: Will Profit-Taking Trigger a Pullback?

Market Overview

Gold prices (XAU/USD) failed to maintain their previous bullish momentum, slipping below the $2,940 mark as the US Dollar rebounded from its lowest point since December 10.

The strengthening dollar made gold more expensive for international buyers, leading to decreased demand.  Gold was last seen trading at $2,938.62, down 0.01%, reflecting cautious market sentiment.

Profit-Taking and Overbought Conditions Impact Gold

A key factor behind gold’s modest decline is profit-taking, as the daily chart shows slightly overbought conditions. “Gold’s rapid ascent made it vulnerable to a pullback,” noted a senior market analyst. Traders are unwinding some bullish positions as they wait for fresh catalysts, particularly US economic data and Federal Reserve policy signals.

Despite the short-term dip, gold continues to find support from economic uncertainties, including trade tensions and inflation concerns. The latest World Gold Council report showed the highest weekly inflow into gold-backed ETFs since March 2022, signaling continued demand for safe-haven assets.

Analysts suggest that gold remains resilient as long as economic risks persist, with immediate resistance at $2,956.68 and support at $2,903.22.

Silver Under Pressure but Holds Ground Amid Rate Cut Expectations

Silver also faced downward pressure, trading at $32.30 due to the stronger US dollar impacting demand. However, economic uncertainty and expectations of potential interest rate cuts by the Federal Reserve provided some support.

Federal Reserve’s Stance Remains Crucial

Market attention is now focused on the upcoming US Consumer Confidence Index and the Richmond Manufacturing Index, along with speeches from Federal Reserve officials.

Expectations of at least two rate cuts this year are keeping a floor under gold and silver prices, as lower interest rates enhance the appeal of non-yielding precious metals.

Short-Term Forecast

As investors navigate through geopolitical uncertainties and mixed economic signals, volatility in gold and silver markets is likely to continue.  Traders should watch for price movements around key pivot points—$2,930.98 for gold and $32.51 for silver—as they could determine the next directional move.

Gold Prices Forecast: Technical Analysis

Gold is trading at $2,938.62, down a slight 0.01%, showing a cautious mood among investors. It sits comfortably above the 50 EMA at $2,922.86 and well above the 200 EMA at $2,829.72, suggesting a continued short-term bullish bias within a broader upward trend.

Immediate resistance lies at $2,956.68, and a break above this level could push prices towards $2,985.93. Conversely, if sellers gain control, immediate support is at $2,903.22, with a more robust safety net at $2,877.18.

The key level to watch is the pivot at $2,930.98—holding above keeps the bulls in play, but a dip below could trigger sharper declines.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading at $32.30, down 0.04%, reflecting a cautious market sentiment. It’s sitting just below the 50 EMA at $32.50 but comfortably above the 200 EMA at $31.65, indicating short-term bearishness within a longer-term uptrend. Immediate resistance stands at $33.01, and breaking above this level could push prices toward $33.38.

On the downside, support is close at $32.08, with a stronger safety net at $31.51. The pivot point to watch is $32.51—trading below this level keeps the bearish momentum intact, but a break above could flip the sentiment to bullish.