Gold, Silver, Platinum Forecasts – XAG/USD Tests Record High Amid Fed Rate Cut Expectations

Gold (XAU/USD)

Gold prices soared to a record high of $2,185.19 per ounce following a report showing an increase in the U.S. unemployment rate, which fueled expectations that the Federal Reserve might cut interest rates soon.

Spot gold rose by 0.7% to $2,173.49, while U.S. gold futures also gained 0.7%, reaching $2,180.50. This surge, the largest weekly percentage increase since mid-October, was influenced by a combination of the Fed’s anticipated rate cuts and a weakening dollar, making gold more affordable for overseas buyers.

Traders increased bets on a Fed rate cut as early as May, though June remains more likely. Overall, the gold market is experiencing a bullish trend, driven by its safe-haven status and expectations of continued low interest rates.

Silver (XAG/USD)

Silver prices initially surged to a near three-month high on Friday, driven by rising U.S. unemployment rates and expectations of Federal Reserve rate cuts, but failed to sustain these gains, turning lower by the session’s end. The early rally in silver closely followed a record high in gold, influenced by a report indicating slowed wage growth amidst accelerating job numbers.

Market analysts point to the likelihood of Fed rate cuts and a weaker dollar, which dropped 0.3%, making silver more affordable internationally, as major factors. The likelihood of a Fed rate cut by May has increased, with June still seen as the more probable month.

Silver’s recent ascent, eclipsing its December peak, was aided by indications of easing price pressures and its status as a safe-haven asset. The low-interest rate environment supports silver’s appeal, as it reduces the opportunity cost of holding the metal.

Despite a generally upward trend, silver’s dependence on gold’s market movements suggests a cautiously bullish or near bearish market outlook.

Platinum

Like silver, platinum traders chased gold higher early in the session, only to fail to sustain a rally over the 200-day moving average at $922.22, which is now resistnace.

The nearest support is the 50-day moving average at $906.62. Crossing to the weakside of this indicator will put platinum in a bearish position.