Gold and Silver Price Forecast: Metals Face Pressure Before CPI Data

Gold (XAU) pulled back strongly on Wednesday as oil prices and the U.S. dollar increased. The escalating US-Iran tensions raised inflation worries again. The higher inflation increases the expectations of higher interest rates. This is bad news for gold as higher rates make a non-yielding asset more expensive.

The positive shift in the US dollar also put pressure on the gold and silver (XAG) prices. Traders are also expecting a higher probability that the Fed will hike by the end of the year. This has led to an influx of dollar buying and precious metal selling.

The same macro pressure also took a toll on silver. Silver is more responsive than gold, as it has strong drivers both as a safe haven and in industrial uses. The stronger US dollar can negatively affect silver. But silver can still find support if demand from the industry persists.

The market is now awaiting US CPI data today. Hotter-than-expected inflation data could support more bets on Fed rate hikes and push gold lower. On the other hand, softer CPI data could give gold some short-term relief.

Gold Price Forecast – Breakdown Points to Deeper Support

The daily chart for spot gold shows that prices remain under pressure after the breakout from the 200-day SMA at $4,400. This breakout was significant, as it also broke the ascending broadening wedge pattern. This targets $3,900 to $4,000 as the prime target of this breakout.

The RSI indicator is now reaching the buy zone ahead of the inflation data release. But the price remains under pressure and requires some catalyst to rebound from this region.

A recovery above $4,500 is required to initiate a strong positive shift in the gold market. But if gold prices drop towards the $3,900 to $4,000 area, it will likely produce a strong buy signal for investors.

The target of $3,900 to $4,000 is also found by the symmetrical triangle pattern, which broke at the $4,500 region. The prices remain under pressure after the breakdown.

The 4-hour chart for spot gold also shows that the gold price remains under pressure after the breakout of the red region at $4,400 to $4,500.

The short-term bearish structure is pushing the prices lower after a strong consolidation between $4500 and $5000 for the past 2 months.

Silver Price Forecast – Breakdown Brings Long-Term Support Into Focus

The silver price also remains under pressure after the breakout from the $72 area. The price is entering the $50 to $60 range, which will likely be considered a strong buy area for long-term investors.

The upper level of support has already hit at $64, but a slight push is likely within the orange and red zones to form the reversal and bottom pattern.

The 4-hour chart for spot silver shows that the price remains under pressure after the break of the $70 to $72 area. The immediate target of this breakdown is the $60 region.

The $50 to $60 range remains the long-term support in the silver market, which may introduce a strong buy in 2026.

Bottom Line

Gold and silver prices remain under pressure as a strong U.S. dollar, rising oil prices and expectations of Fed rate hikes weigh on precious metals. As long as the gold price remains below $4,500, it will likely accelerate towards the long-term support of $3900-$4000. Silver also remains under pressure, but the price is now approaching the long-term buy zone of $50-$60. The release of inflation data today is important to watch, as this may define the next move. Gold must recover above $4,500, and silver must recover above $72 to become positive.

Read more: Fed Rate Fears Drive Gold Breakdown