Gold (XAUUSD) & Silver Price Forecast: $3,339 and $32.75 Levels in Focus

Market Overview

Gold (XAU/USD) climbed to a fresh intraday high near $3,330 during early European trading on Friday, recovering from a two-day slump that saw prices dip to $3,275.

The rebound was driven by renewed safe-haven demand amid rising geopolitical tensions and a softer US Dollar. Despite the Federal Reserve maintaining a hawkish stance, the precious metal found support as investors sought stability in uncertain markets.

The US Dollar, which recently touched a one-month high, eased slightly, providing further tailwinds for gold as it remains sensitive to dollar movements.

According to recent market data, the US Dollar Index (DXY) slipped 0.2% on Friday, reflecting reduced demand for the greenback as traders priced in potential de-escalation in global trade conflicts.

This dollar weakness helped lift gold, which typically benefits from a softer dollar as it becomes more affordable for foreign buyers.

Silver Follows Gold’s Lead as Market Sentiment Improves

Silver (XAG/USD) also bounced higher, trading around $32.53, up from a recent low near $32.10. The metal hit an intraday high of $32.57, supported by the same safe-haven demand that drove gold prices higher.

Silver’s gains were further supported by its industrial demand, with ongoing trade talks between the US and China potentially boosting sentiment for the industrial metal.

Fed Policy Remains a Key Headwind

Despite the bullish sentiment, the Federal Reserve’s commitment to higher-for-longer interest rates remains a critical obstacle for further gold and silver gains.

The Fed’s recent statements suggest that rate cuts are unlikely in the near term, potentially capping upside for precious metals as higher rates increase the opportunity cost of holding non-yielding assets.

Short-Term Forecast

Gold may extend its recovery above $3,339, targeting $3,370 and $3,432, while a break below $3,303 risks a pullback to $3,245.

Gold Prices Forecast: Technical Analysis

Gold is trading around $3,320, finding support near the $3,303 level, which aligns with a key trendline that has guided the recent uptrend. The 50 EMA at $3,339 is acting as immediate resistance, and a break above this level could open the path to the next resistance at $3,370, followed by the more significant $3,432 level.

On the downside, a break below the $3,303 support could expose the $3,245 level, potentially testing the broader uptrend.

Overall, the current structure suggests a cautious but potentially bullish setup, with a break above $3,339 needed to confirm a stronger recovery.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading around $32.53, holding above the ascending trendline support at $32.30. The 50 EMA at $32.26 is providing immediate support, reinforcing the short-term bullish structure.

If prices can break above the nearby resistance at $32.75, the next target is the $33.25 level, followed by a more significant barrier at $33.70. However, a failure to hold this trendline could shift the focus back to the $31.96 support, potentially challenging the broader recovery.

Overall, the current structure suggests a cautious uptrend, but a clear break above $32.75 is needed to confirm a stronger push higher.