Gold (XAUUSD) & Silver Daily Forecast: Can XAU Reclaim $3,432 Resistance?

Market Overview

Gold (XAU/USD) edged higher on Thursday, trading around $3,328 after briefly touching $3,412 in the Asian session. The metal remains well-supported as investors respond to heightened geopolitical risks and economic uncertainty.

According to the World Gold Council, central banks have purchased a record 1,136 metric tons of gold in 2023, reflecting a shift toward hard assets as global tensions rise.

Silver Gains on Dollar Weakness and Geopolitical Concerns

Silver (XAG/USD) also advanced, trading near $32.36 after hitting a session high of $32.94. The metal’s appeal as both a safe-haven and an industrial asset has supported prices amid a weaker U.S. dollar. The U.S. Dollar Index (DXY) remains below 101, providing a favorable backdrop for silver.

Analysts note that silver’s broader industrial demand, combined with safe-haven interest, makes it particularly sensitive to shifts in market sentiment.

Upcoming U.S. initial jobless claims data could offer further insight into the state of the U.S. economy, potentially influencing silver’s near-term direction.

Fed Policy and Economic Data in Focus

Traders are also monitoring the Federal Reserve’s next moves. While the Fed held interest rates steady at its recent meeting, Fed Chair Jerome Powell’s cautious tone on the economic outlook has kept markets on edge.

U.S. inflation and retail sales data, due later this week, will likely shape the near-term path for both gold and silver, as traders assess the Fed’s stance on monetary policy.

Short-Term Forecast

Gold remains near $3,328, with key support at $3,303-$3,326. Silver faces pressure near $32.36, with critical resistance at $32.83 and support at $32.23.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is trading near $3,328 after a sharp pullback from the recent high of $3,432, reflecting a nearly 1.60% intraday drop. The price is hovering just above the 50-day Exponential Moving Average (EMA) at $3,326, a critical level that has provided reliable support in recent sessions. The 200-day EMA sits slightly lower at $3,303, reinforcing this zone as a key support region.

Gold’s sharp sell-off from the $3,432 resistance signals possible profit-taking or a broader risk-off sentiment, with immediate support around $3,303-$3,326 potentially attracting buyers.

A break below this zone could expose the metal to a deeper correction toward the $3,280 level, while a rebound might target $3,383 or even the $3,432 resistance if momentum returns.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading around $32.360, facing strong selling pressure after failing to break the critical $32.835 resistance, which aligns with the upper boundary of a descending triangle pattern. This pattern, typically a bearish continuation signal, has kept silver trapped between a series of lower highs and a solid base near $32.232.

The 50-day Exponential Moving Average (EMA) at $32.698 is acting as a dynamic resistance, adding to the downside pressure. Silver’s failure to break above the $32.835 pivot point within the triangle suggests a potential retest of the $32.232 support.

A decisive break below this level could trigger a sharper decline toward $31.666, while a rebound above the 50 EMA at $32.698 might set up a retest of $33.254. With the 50 and 200 EMAs converging, momentum is likely to remain capped unless a clear breakout occurs.