Gold Prices Forecast: Breakout Looms as Fiscal Turmoil and Dollar Slide Drive Safe-Haven Demand
Gold prices are edging closer to a key breakout zone, lifted by a weakening U.S. dollar and escalating concerns about America’s fiscal stability. The yellow metal tested $3,310.48, its highest level in over a week, fueled by safe-haven flows triggered by political gridlock in Washington and surging bond yields.
Moody’s recent downgrade of the U.S. credit rating, due to ballooning deficits tied to Trump’s proposed tax cuts, further weighed on the dollar and amplified gold’s appeal. Yields on long-term Treasuries jumped—30-year bonds topped 5%—as investors brace for inflationary fallout from potential debt monetization.
From a technical angle, gold is threatening to break above the $3,310.48 pivot. If confirmed, this sets the stage for a rally toward $3,435.06 and potentially the record high near $3,500.20. Downside support rests at $3,277.91 and $3,184.80. Unless the dollar stages a sharp rebound or yields ease materially, gold’s bullish setup remains intact.
Silver Prices Outlook: Bullish Momentum Builds as Dollar Weakness and Inflation Fears Ignite Upside Potential
Silver has reasserted bullish control, buoyed by a softening dollar and inflationary concerns that have reignited investor appetite for hard assets. Following a strong rebound above its 50-day moving average at $32.80, the metal is now testing resistance at $33.70.
Moody’s downgrade of U.S. credit spurred broad dollar weakness, making silver more attractive to foreign buyers. Traders are also digesting a surge in Treasury yields tied to deficit concerns, with Deutsche Bank projecting Trump’s tax agenda could swell the national debt by as much as $5 trillion.
Technically, silver remains well-positioned for further gains. A confirmed breakout above $33.70 could open a move to the $34.59–$34.87 range. Key support levels are $32.80 and $31.39. The current macro backdrop supports continued strength.
Platinum Market Setup: Supply Crunch and Geopolitical Risk Ignite Bullish Reversal
Platinum has surged to $1,075.59, its highest level in over a year, underpinned by tightening supply and elevated geopolitical stress. China’s platinum imports hit a one-year high last month, depleting already low inventories and raising alarms about a looming shortage. At the same time, investors are increasingly rotating into hard assets amid growing concerns over U.S. fiscal policy and rising inflation risks.
Technically, platinum has broken through key resistance levels and appears on course to challenge the $1,100 mark. With no immediate technical ceiling, and a supportive fundamental backdrop, the market is positioned for further gains.
More Information in our Economic Calendar.
