Gold and Silver Price Forecast: Rebound Puts $4,150 and $55 in Focus

Gold (XAU) price rebounds on Monday to reach near the $4,130 level. US dollar also eased slightly on Monday after the strong gains on Friday. Crude prices also dropped as President Trump said that he was unlikely to order further strikes on Iran if talks about peace made any progress.

The correction in oil prices may reduce concerns about inflation and reduce expectations for the increase in interest rates. But the situation in the Middle East remains uncertain. Any new attacks on Iran facilities may trigger renewed buying pressure in the oil market. The market is now waiting for US CPI data on Tuesday which may drive the next move in gold and silver (XAG) prices.

Silver prices also moved higher on Monday and outperformed gold as easing of US dollar supported precious metals. The rebound in technology stocks on Monday has also improved market sentiment after sharp sell-off last week. Since silver is used in industry, the rebound in stocks may also provide some support to silver prices. But the risk in precious metals comes from concerns about global economic growth and high borrowing costs which may limit further gains.

Gold Price Forecast: Rebound Faces $4,150 Resistance

The daily chart for spot gold shows that the price has reversed from the long-term support region. Gold has recovered above the $4,000 area and continues to move towards the 50-day SMA.

Spot gold has already broken the triangle pattern, but the price has recovered from the support areas. A confirmed break above $4,250 will likely push prices higher toward the 200-day SMA near $4,460.

Moreover, the RSI is rebounding from oversold levels as gold rebounds from the low of $3,870. A break above $4,150 in spot gold will likely push the RSI above the midline which would support a positive outlook in the gold market.

The recovery in gold prices is also visible on the weekly chart. The failure to break below the key level triggered strong rebound. If the price breaks above $4,150, it will open the way for further upside toward the $4,400 area. But a break above $4,400 may push the price toward the $4,800 to $5,000 region. The region of $4,800-$5,000 is considered a key resistance zone in the gold market.

The 4-hour chart for spot gold also shows the importance of the current support level. Spot gold has already broken out of the descending channel that stretches from the highs of September 2026. The immediate resistance for spot gold is now $4,150. A break above $4,150 may push the price to $4,250. But a break below $4,050 will open the way for a further drop towards $4,000 and $3,950.

Silver Price Forecast: Break Above $55 Could Lift Prices to $60

The daily chart for spot silver also shows that the silver price remains within the major support zone between $45 and $55. A break above $55 may open the way for further upside toward 50-day SMA at $59.75.

The silver price may continue to drop to $45 if it breaks the $48 level. A break above $60 may push the price to the $72 area. The RSI is also rebounding from oversold levels as the price remains constructive within support zone.

The 4-hour chart for spot silver shows the formation of a descending wedge pattern. The support of this wedge is $48 where the silver price rebounded last week. Now the resistance of this wedge is $60. A confirmed break above $60 may be a bullish sign for silver.

What to Watch Next

Gold and silver prices rebounded on Monday as the US dollar eased slightly. The market is watching for the US CPI data that may drive the next move in both metals. The hot inflation data may fuel a rally in US dollar index which may trigger a correction in metals. But softer inflation may trigger a correction in the US dollar index and trigger a rally in gold and silver prices. Gold needs to break above $4,150 to reach the resistance of $4,250. On the other hand, silver must break above $55 to open the way for $60.

Read more: Rally Faces US CPI Test After Dollar Jump