Gold and Silver Price Forecast: Fed Decision Looms as Peace Hopes Lift Metals

Gold (XAU) and silver (XAG) remain strong on optimism that a peace deal will be reached between the U.S. and Iran, easing some inflationary pressure in the market. Oil prices move close to a three-month low as the potential for Iran’s oil to return to the market. This helped reduce concerns about a new inflationary pressure driven by energy prices. Therefore, traders reduced their hopes of another rate hike in the U.S. The reduced hopes of a rate hike supported the gold prices above $4,000.

Gold rose for a fifth straight session to near a one-week high at $4,369. The rally demonstrates that investors continue to turn to gold as a hedge to policy risk, geopolitical uncertainty and central bank uncertainty. But it is also getting a bit more cautious ahead of the Fed decision. Traders are focused on Fed Chairman Kevin Warsh’s first policy message but the market is bracing for a rate hold. As long as he maintains his hawkish tone, gold could be under pressure in the short-term despite the peace optimism.

Silver also gained ground and rebounded from the $60 zone to hit the $70-$72 key level. The silver price is reaping the same benefits from falling rate-hike expectations that gold is enjoying. It also often sees momentum buying when gold is in an uptrend. But silver could be more volatile as it is more closely tied to industrial demand and risk sentiment.

Gold Price Forecast: XAUUSD Tests $4,350 as Fed Decision Nears

The chart below shows that the gold price rebounded strongly from the $4,000 support towards the first important resistance of $4,350. This rebound was triggered due to the extremely oversold conditions on the 4-hour chart as indicated by the RSI.

Similar conditions were observed in March 2026 and February 2026, which triggered a strong relief rally in the gold market. Now the price is hovering around $4,350. A break above $4,400 will likely push the price towards $4,500.

The importance of $4,350 is also observed in another chart, which shows that this resistance area is important. Until the gold price breaks above $4,500, it will remain in the consolidation zone between $4,000 and $4,500.

If the deal between the U.S. and Iran is confirmed, it will likely push gold prices higher towards $5,000.

Silver Price Forecast: XAGUSD Test $72 After Rebound From $60

The daily chart for spot silver also shows that the strong rebound from the primary buy zone of $60 has pushed the silver price towards the key pivotal zone of the $70 to $72 area.

A break above $72 is required to push silver towards $80. However, if the price drops below $60, it will likely continue to drop towards the $50 area, which is the major accumulation zone.

Overall, the silver price structure remains strongly bullish. The silver price will likely form a long-term bottom within the primary buy zone or the major accumulation zone presented in the chart below.

The short-term price structure for silver also shows good buying interest around the $60 area, but the price must break above the $70 to $72 region to push it towards $78.60. If the price fails to break above $72, it may again drop towards the $60 area.

Therefore, the Fed decision remains key for gold and silver prices. If the Fed remains hawkish, it may put further pressure on gold and silver prices and limit a break above the key resistance zones.

What is Next?

Gold and silver remain supported as hopes for peace reduced inflation expectations and the prospects of another U.S. rate hike. Gold is testing the first resistance of $4,350, after the rebound from $4,000. A break above $4,400 will push the price to $4,500. A break above $4,500 will open the door for a rally to $5,000.

Silver is also showing an impressive recovery from the $60 buy zone. The spot silver price must break above $72 to keep going higher to $80. But the Fed decision is the main risk. A hawkish statement by Kevin Warsh could curb the rally and hold both metals in check as they approach resistance areas. But the final peace deal will likely keep buying pressure high and reduce expectations of further rate hikes, which may keep gold and silver prices strong.

Read More: Gold Bulls Defend $4,000 as PPI Inflation Risks Rise