Gold (XAUUSD) & Silver Price Forecast: $3,365 and $34.79 Levels Critical for Next Market Moves

Market Overview

Gold prices edged lower during the Asian session on Tuesday, with spot gold (XAU/USD) dipping to $3,360 per ounce, down from a four-week high reached earlier. The retreat coincided with a modest rebound in the US Dollar and a firm performance in global equity markets, which reduced demand for the safe-haven metal.

The US Dollar Index (DXY) rebounded from a six-week low, gaining 0.2% to 104.35, while Asian equities mirrored Wall Street’s positive close. These shifts prompted some profit-taking after Monday’s rally, during which gold had surged over 1.5% on geopolitical tensions and speculation surrounding Federal Reserve policy moves.

Despite the pullback, gold’s downside was limited. “Persistent concerns about trade disruptions and expectations of Federal Reserve rate cuts have helped stabilize gold prices,” said a commodities strategist at a Hong Kong-based brokerage.

Silver Trades Lower but Remains Supported by Broader Risks

Silver (XAG/USD) traded at $34.79 per ounce, reflecting modest losses as the precious metal followed gold’s trajectory. The dip comes amid an uptick in risk sentiment, as investors rotated into equities. However, expectations of Fed easing and sustained global uncertainties have kept silver’s downside in check.

Fed Outlook and Economic Data to Guide Precious Metals

Market expectations lean toward the Federal Reserve delivering at least two rate cuts in 2025, a view bolstered by recent comments from Fed officials. Traders now await key US economic releases, including the JOLTS Job Openings report and Friday’s Nonfarm Payrolls (NFP) data, which could influence both the dollar and precious metals.

“While stronger-than-expected US jobs data may lift the dollar in the near term, the overarching narrative of a dovish Fed remains supportive for gold and silver,” noted an analyst at a Singapore-based investment firm.

With geopolitical tensions and trade uncertainties persisting, the broader market sentiment remains favorably inclined towards safe-haven assets, positioning gold and silver as key beneficiaries in a volatile global environment.

Short-Term Forecast

Gold consolidates near $3,360, eyeing a breakout above $3,365. Silver holds support at $34.41; a push above $34.79 could target $35.50. Key levels hint at swift moves.

Gold Prices Forecast: Technical Analysis

Gold (XAU/USD) is consolidating below the $3,365 resistance after a strong upward move. Price action is testing the 23.6% Fibonacci retracement at $3,364, with the 50-period exponential moving average (EMA) around $3,344 and the 200-period EMA near $3,314 providing dynamic support.

A decisive break above $3,365 could signal renewed bullish momentum, targeting $3,392 or higher.

Conversely, failure to hold this level may lead to a pullback toward $3,332 (50% Fibonacci) or $3,318 (61.8% retracement). The narrowing price range and proximity to key Fibonacci levels suggest a potential breakout.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) has pulled back after reaching the $34.79 resistance, testing the 23.6% Fibonacci retracement at $34.41. The 50-period EMA near $33.79 and the 200-period EMA around $33.31 are acting as dynamic support, while price action consolidates within a broad triangle formation.

A breakout above $34.79 could drive a push towards higher resistance levels, while a sustained rejection at this zone might lead to a retracement toward $33.99 (50% Fibonacci) or even $33.79 (61.8%).

The consolidation range is narrowing, signaling a potential breakout ahead. Traders should watch for confirmation above $34.79 or below $33.79 to gauge the next decisive move in this tightening setup.