Gold (XAUUSD) & Silver Price Forecast: Bulls Eye $3,379 and $34.16 on Safe-Haven Surge

Market Overview

Gold (XAU/USD) rose for a fourth consecutive session during Thursday’s Asian trade, hitting a near two-week high of $3,345. The move comes amid deepening concerns over U.S. fiscal stability and a weaker U.S. dollar, driving strong demand for safe-haven assets. Silver (XAG/USD) followed suit, trading at $33.49, buoyed by the same risk-off sentiment.

The metals rally accelerated after Moody’s downgraded the U.S. sovereign credit rating from Aaa to Aa1, citing structural fiscal weaknesses and long-term debt sustainability.

Markets also reacted to the House Rules Committee’s approval of a tax-and-spending bill projected to add between $3 trillion and $5 trillion to the federal deficit. Treasury auctions have struggled as well—Wednesday’s 20-year bond sale saw tepid demand, reflecting waning confidence in U.S. debt markets.

Dollar Weakens as Fed Rate Cuts Remain in Focus

The U.S. Dollar Index (DXY) slipped to a two-week low as expectations for Federal Reserve rate cuts in 2025 gained traction. Softer inflation data and stagnating retail sales have led markets to price in a more dovish monetary policy path.

The dollar’s decline has made gold and silver more appealing to non-dollar holders, strengthening their upward momentum.

“With growing uncertainty around U.S. fiscal policy and weakening macro indicators, safe-haven flows are likely to persist,” noted a senior commodities analyst in Singapore.

Global Trade Tensions Add to Safe-Haven Demand

Beyond the U.S. fiscal story, renewed trade friction between Washington and Beijing has added to investor caution. China’s Ministry of Commerce sharply criticized U.S. restrictions on AI chip exports, accusing the U.S. of economic coercion. Market participants see this escalation as a threat to already fragile global supply chains.

Meanwhile, ongoing geopolitical tensions in Eastern Europe and the Middle East continue to fuel demand for precious metals. With investors seeking shelter from fiscal uncertainty, policy risks, and elevated global conflict, gold and silver remain well-supported ahead of key U.S. data releases, including PMI figures, jobless claims, and housing market updates.

Short-Term Forecast

Gold eyes a breakout above $3,346 but looks stretched short term; silver tests $33.69, with $34.16 next if bulls maintain control above key moving averages.

Gold Prices Forecast: Technical Analysis

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $33.49 after breaking out above a multi-week descending trendline and reclaiming key resistance at $33.24. The breakout is supported by a sustained move above both the 50-EMA ($32.77) and 200-EMA ($32.61), reinforcing the bullish trend.

Price action is now challenging the $33.69 resistance—last seen in mid-April—as bulls attempt to extend the rally. If silver closes above $33.69, the next targets are $34.16 and $34.59. However, if price falters, a pullback toward $33.24 or even the trendline breakout around $32.70 could be in play.