Gold (XAUUSD) & Silver Daily News: FOMC Forward Guidance Key to Breakout Direction

Market Overview

Gold continues to face headwinds as traders shift focus to the Federal Reserve’s policy meeting. With markets largely pricing in a pause in interest rate changes, the key driver now is forward guidance. Investors are particularly attentive to any signals that suggest the Fed may delay rate cuts further into the year.

The recent strength in the U.S. dollar has weighed heavily on gold, dampening its appeal as an alternative store of value.

The dollar’s rally reflects both resilient U.S. economic data and renewed expectations that borrowing costs will remain restrictive. As a result, gold has been unable to sustain momentum, despite intermittent safe-haven demand.

Improving Trade Sentiment Undermines Safe-Haven Demand

Global trade developments have also contributed to the subdued tone in gold. Recent progress in trade agreements between major economies has lifted market sentiment and reduced the urgency for investors to seek protection in precious metals. This shift is diminishing gold’s traditional role as a geopolitical hedge.

While tensions persist in certain regions, the broader improvement in trade cooperation is encouraging risk appetite. In turn, this dynamic is making it more difficult for gold to attract consistent inflows, especially in the absence of strong dovish signals from central banks.

Silver Tracks Gold Amid Policy Uncertainty and Soft Industrial Demand

Silver has mirrored gold’s cautious tone, caught between competing influences of monetary policy and industrial demand. Like gold, silver is sensitive to interest rate expectations, and the current policy ambiguity has left the metal directionless.

Additionally, mixed signals from global manufacturing data have added another layer of uncertainty. While some indicators suggest stabilization in industrial activity, others indicate continued softness, particularly in regions with slower economic recoveries.

This has limited silver’s upside, even as it benefits from structural demand linked to energy transition sectors.

Looking Ahead: All Eyes on the Fed and U.S. Data

Markets will closely watch the Federal Reserve’s language on inflation risks and policy flexibility. Any signs of a prolonged higher-rate environment may reinforce the current bearish pressure on both gold and silver.

Until then, price action is likely to remain subdued, driven by shifts in dollar sentiment and incoming economic data.

Short-Term Forecast

Gold hovers near $3,316 while silver slips below $38. As the Fed meeting nears, dollar strength and policy uncertainty cap upside, keeping metals in a tight consolidation range.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is consolidating near $3,316 after a sharp pullback from $3,394, trading within a descending channel. Despite bearish pressure, price action is stabilizing above key support at $3,302. A rebound is forming as the RSI flattens, suggesting seller exhaustion.

If bulls break above the upper trendline near $3,322, gold could target the 100-EMA at $3,346. A close above this level would confirm a short-term reversal. However, failure to hold $3,302 could expose $3,280.

The technical structure points to a potential bullish breakout, but confirmation hinges on a clean close above $3,322 with increasing volume. Until then, traders should watch for further consolidation and signs of strength near the lower channel boundary.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) continues to trade below the key resistance at $38.31, with price action slipping toward $37.97 in early Tuesday trading. The chart shows a clear breakdown below the 50- and 100-hour EMAs, indicating sustained bearish momentum.

A descending trendline is capping gains, and repeated rejections at this line reinforce short-term selling pressure. If $37.61 breaks, the following major supports lie at $37.23 and $36.91. On the upside, bulls must reclaim $38.31 and break above the EMAs to shift bias back to neutral.

Until then, silver remains vulnerable to downside extensions, especially if broader risk-off sentiment weighs on industrial metals.